In 2011, the FSA fined Rameshkumar Goenka, a Dubai-based private investor, US$9,621,240 for market abuse. This was the largest fine imposed by the UK financial regulator on an individual. The FCA has now fined a senior partner and compliance officer at Paul E Schweder Miller & Co, David Davis, £70,258 and a broker at the same firm, Vandana Parikh, £45,673 for failing to act with due skill, care and diligence in the period leading up to the illegal manipulation of the securities traded by Mr Goenka on the London Stock Exchange in October 2010. Mr Davis and Mrs Parikh were also found to have breached Principle 6 of the FSA's Statements of Principle and Code of Practice for Approved Persons (APER). The FCA have withdrawn Mr Davis' approved person status and prohibited him from performing certain influence functions.
The FCA has also fined Tariq Carrimjee £89,004, an experienced investment adviser and the senior partner and chief executive of Somerset Asset Management LLP, in relation to the same events. Mr Carrimjee was found to have 'recklessly assisted' Mr Goenka, in his plan to manipulate the closing price of Gazprom global depositary receipts (GDRs) in April 2010 and Reliance Industries Limited GDRs in October 2010. Mr Carrimjee had introduced Mr Goenka, his client, to a London-based firm of brokers for the specific purpose of trading on the London Stock Exchange in relation to closing auctions for Gazprom and Reliance GDRs. The FCA found that he had assisted with arrangements for the trading, notwithstanding that he suspected that Mr Goenka held structured products in relation to trades and was aiming to secure the price of the GDRs at a false or artificial level, to avoid a loss. The FCA fined Mr Carrimjee on the basis that he failed to take any steps to prevent or report the market abuse.