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Former stockbroker fined for "market abuse"

Published on 18 Nov 2009 under category: legal

A former stockbroker has been fined a total of £24,000 by the Financial Services Authority (FSA) for "market abuse".

Alexei Krilov-Harrison used his position at Pacific Continental Securities to provide inside information to clients about one AIM-traded company's business ventures.

In March 2007, the ex-stockbroker discovered that Provexis had entered into a partnership with another firm and was expecting to see a rise in share price when the news was made public.

Krilov-Harrison then called three clients, informed them of the as yet unannounced deal and urged them to buy Provexis shares.

Commenting on the case, Margaret Cole, director of enforcement and financial crime at the FSA, said: "Anyone who uses inside information to encourage their clients to buy shares is abusing their privileged position and cheating other honest investors.

"This is plainly wrong. Market participants must ensure they do not pass inside information to their clients in these circumstances."

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