The regulator fined Samuel Kahn £1,094,900, its first fine calculated under the new penalties system introduced in March 2010, after a series of offences.
Between 24 March and 30 April 2010, Kahn deliberately sought to inflate the share price of Global Brands Licensing, co-ordinating trades by third parties and impersonating others, according to the FSA.
The FSA says Kahn has never worked at an authorised firm that it regulates but noted that he had been the subject of an FSA investigation and enforcement action in 2007 for his involvement in overseas boiler-room activities.
Separately, the FSA made Kahn bankrupt in 2008 after he admitted liability for claims totalling up to £3.7m made by the FSA on behalf of around 800 investors.
“Kahn undertook a month-long campaign of market abuse, manipulating 85% of the buy trades and 91% of the sell trades of GBL for his own financial benefit as well as to facilitate tax relief fraud and boiler room activities. He impersonated other individuals to conceal his involvement and the scheme was only halted due to the suspension of GBL’s shares on PLUS,” said Tracey McDermott, acting director of enforcement and financial crime at the FSA.
“The FSA views Kahn’s conduct as particularly serious due to his prior misconduct and previous action taken against him by the FSA. In imposing a significant fine under our new penalties regime and obtaining an injunction against Kahn, we want to send a clear message to the market. The FSA will not tolerate this type of repeat behaviour and will use all of our powers to ensure credible deterrence.”
