FSA issues £2.8 million fine to city chief executive

LONDON – The UK Financial Services Authority (FSA) has announced that it has fined a former city chief executive £2.8 million.

Simon Eagle has received the largest fine ever given to an individual by the FSA. He ran SP Bell, a stock-broking group, and was punished for share-ramping – deliberately attempting to push up the price of Fundamental-E Investments (FEI)

Eagle owned 85% of FEI and used his role at SP Bell to create demand for shares by trading between clients, most of whom were unaware.

Over the course of a year, Eagle was able to raise the share price of FEI from 2.5 pence in May 2003 to 11.75 pence in July 2004, while also benefiting from the commission generated by the transactions.

Margaret Cole, director of enforcement at the FSA, says: “This scheme was rotten throughout and at the core was Simon Eagle. He showed a breathtaking disregard for his clients, for his duty as an approved person and chief executive and for the effect of his scheme on markets.”

Eagle’s fine includes a disgorgement of £1.3 million of profits and he has also been banned from working in the financial services industry.