A British businessman has been fined more than £1 million for a trading scam in which he impersonated other people including the director of a charity in order to boost share prices.
Samuel Kahn, from Salford, plotted to inflate the share price of the company Global Brands Licensing by 3.25 pence between March and April 2010. He then had the profits of the scam delivered to him in cash.
The scheme earned him more than £210,000 before the Financial Services Authority stepped in. The case has become a legal first because the FSA won a High Court injunction preventing Mr Kahn from engaging in such market abuse in future. If he breaches the injunction he could face a jail sentence.
Mr Kahn was previously investigated by the FSA in 2007 for his role in defrauding hundreds of investors by selling shares at prices far above their value. After admitting that he was responsible for the scheme, the FSA declared him bankrupt.
The FSA’s Tracey McDermott said Mr Kahn’s history, and the need to "send a clear message to the market" prompted them to impose a significant fine.
"The FSA will not tolerate this type of repeat behaviour and will use all of our powers to ensure credible deterrence."