The Financial Services Authority has fined Mehmet Sepil, the chief executive officer of Genel Enerji, a Turkish oil exploration company, £967,005 for dealing in the shares of a UK listed company (Heritage Oil Plc) on the basis of inside information. The fine was made up of a profit disgorgement element (£ 267,005) and penalty (£ 700,000) and is the largest so far imposed by the FSA against an individual for market abuse under the Financial Services and Markets Act (2000). The penalty of £ 700,000 was reduced from £ 1,000,000 because Mr Sepil agreed to settle at an early stage in the FSA's investigation. In its final notice, the FSA stated (paras. 3.3 and 3.4):The FSA finds that you did not set out to commit market abuse, that you were not familiar with the legal requirements which prohibited you from dealing in Heritage shares, and that you had not received advice on these at the time. This was a serious example of insider dealing by a person in a key position of responsibility. While you were not an approved person, you were the Chief Executive Officer of a company engaged in takeover discussions and had inside information about Heritage’s operations".
Genel Enerji’s chief commercial officer and its exploration manager were also fined for dealing in Heritage’s shares on the basis of inside information.
For further background information see here.
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