Corporate fraud lawyers to be called in for market abuse case?

Published on 2 Jun 2010 under category: legal

The financial services watchdog has banned and fined a former commodity broker for 'market abuse'.

A former commodity broker has been fined and banned by the finance industry watchdog for 'market abuse'.

Andrew Charles Kerr will have to pay £100,000 for manipulating share values.

He will also not be allowed to work again in the financial services industry in any regulated function.

Corporate fraud lawyers could be called in for the case.

According to the Financial Services Authority (FSA), he "actively encouraged" the market manipulation by working in collaboration with a client.

His client told him to buy 600 London International Financial Futures and Options Exchange coffee futures before 12:30 to ramp up the price.

However, Mr Kerr failed to make a profit for his client.

Alexander Justham, director of markets for the regulator, said: "Participants in the futures and options markets should be in no doubt about how seriously the FSA views manipulation which disrupts proper pricing mechanisms and risks a false market in the underlying commodity."

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