On August 12, 2015, the High Court of Justice, Chancery Division issued a judgment granting a permanent injunction to prohibit market abuse and imposing fines amounting to £7,750,000 against Da Vinci Invest Ltd and Mineworld Ltd as well as individual traders Szabolcs Banya, Gyorgy Szabolcs Brad and Tamas Pornye. Four of the five defendants were resident or incorporated abroad. The defendants were found to have committed market abuse in 2010 and 2011 using a trading tactic called “layering” or “spoofing,” which enabled them to trade UK-listed shares at artificial prices. This is the first time that the FCA has asked the High Court to impose a permanent injunction for market abuse and to impose a penalty. Usually, the FCA would impose any penalty for market abuse.
The judgment is available at: http://www.bailii.org/ew/cases/EWHC/Ch/2015/2401.html and the FCA’s press release is available at: http://www.fca.org.uk/news/fca-secures-high-court-judgment-awarding-injunction-and-over-7-million-inpenalties.