The FSA has won its market abuse case in the Court of Appeal against Winterflood Securities Limited and two of its traders, Stephen Sotiriou and Jason Robins.
Winterflood, Sotiriou and Robins challenged the decision of the Financial Services and Markets Tribunal in March 2009 that they had committed market abuse. They subsequently appealed the Tribunal’s decision at the Court of Appeal.
The decision of the Court of Appeal means that Winterflood, Sotiriou and Robins will now be required to pay their fines of £4 million, £200,000 and £50,000 respectively. The Court of Appeal also ordered that Winterflood, Sotiriou and Robins pay the FSA’s costs of the appeal of £52,500.
Margaret Cole, Director of Enforcement at the FSA stated:
“The importance of this case is underscored by Winterflood’s determination to challenge our finding of market abuse. We are pleased that both the Court of Appeal and the Tribunal agreed with our finding. This case has taken time to resolve because of the legal challenges. It should, however, serve as a clear message to other market participants that we are determined to stamp out market abuse and that we will not back down simply because cases are tough and hard fought.”