Stockbroker jailed for false accounting
Stockbroker Jonathan Bunn, who worked for Lewis Charles Securities, has been jailed for 2 1/2 years after admitting unauthorised trading on the company's book. He was hired by the company to match buyers against sellers but it would appear that over the course of a relatively short space of time he took out "a short position" in HSBC which the firm was finally forced to buy back at a loss of just under £3 million.
Even when the police became involved in the investigation it is alleged that he presented fraudulent share purchase slips to give the impression that all purchases were offset by sales. However, it is believed that he then continued to short the stock until the position became untenable and he was forced to come clean to his employers. This is not the first case of unauthorised trading to hit the headlines in 2010 and it will almost certainly not be the last. However, we have seen a significant increase in successful prosecutions and there is a hope that this will put off those who are potentially contemplating similar moves.
While this particular trade was finally revealed and investigated in full it does beg the question as to how he was able to build up such a massive position without causing alarm until it reached a level where the stock in question was valued at over £42 million!
Share this..
Related stories
HSBC chief executive to give bonus to charity
Michael Geoghegan, the chief executive of HSBC, is in line for a £4 million bonus this year but he has revealed plans to give this to charity. However, five of the company's top earners will share a bonus pot of £35 million. The highest bonus is set to go to Stuart Gulliver, the head of the company's investment banking division, who is in line for a £9 million bonus which he has indicated he wi...
Read MoreSales up and investments at a record high for NS&I
This year, a record £78.90 billion has been invested in NS&I products, up 7.6 per cent from 2005 to 2006 and sales are up by 18.2 per cent to £14.17 billion for the same period. NS&I have put the strong sales down to major promotional activity for the 50th anniversary of the launch of Premium Bonds, as well as rapid growth in sales of NS&I's Inflation-beating Savings and Direct ISA and an advert...
Read MoreIs Investment Advice Worth It?
While money for future investment may be a little thin on the ground at the moment, the markets and the economy will rise once again at some stage. As more people than ever before are investing savings into the stock market (whether directly or indirectly) there is a growing belief by many that they can go it alone, they do not need professional advice. Is this really the future face of investme...
Read MoreWhat is market risk and what is stock risk?
There are many terms which are common in the investment arena and while many investors may have come across the majority of them there will always be some which attract a little confusion and can often be mixed up. Market risk and stock risk are two such risks which many investors often mistake for being one and the same one in fact they are very different.
Market risk
...
Surviving the Economic Climate
In the current economic climate it has become difficult for small businesses to survive and, as such, it is now more important than ever that a niche is found for the products provided by the business. Focusing on product differentiation rather than competing on price is not only helpful for the business but for the market too as it will help to stabilise product mark-ups as the price is n...