The FSA ruled that both men had committed market abuse by using the inside information about the announcement and its likely impact on Provexis' share price as part of their sales tactics Photo: PA By Jamie Dunkley6:00AM GMT 15 Dec 2010 Comment William James Coppin and Perry John Bliss were fined £70,000 and £30,000 respectively by the Financial Services Authority (FSA) for exploiting information they held about Aim-listed research specialist Provexis, while working for Pacific Continental Securities - the stockbroker that collapsed three years ago. In March 2007, Coppin and Bliss both received an email from a colleague entitled "Provexis". The text read: "Gentlemen, This script does not exist" and a sales script for Provexis shares was attached. The text of the script contained inside information stating that Provexis had signed an agreement with an unnamed major food company, revealing that an announcement on the deal was imminent and would drive the share price 5p or 6p higher, a 100pc increase at the time. Over the next two days, both men made a series of calls to clients in which they disclosed that Provexis was going to announce a major contract shortly that see its share price rise. Using this inside information, they encouraged some of their clients to buy Provexis shares. Later that month, Provexis announced the contract and the company's share price increased by 19.81pc in one day. Related Articles FSA to 'intensively regulate' wholesale markets 14 Dec 2010 FSA warned over Crown Currency by police in 2006 11 Dec 2010 FSA warns 49,000 people on 'boiler-room' list 08 Dec 2010 FSA charges ex-Blue Index staff with 'insider dealing' 25 Nov 2010 The three most common mobile security breaches EE The FSA ruled that both men had committed market abuse by using the inside information about the announcement and its likely impact on Provexis' share price as part of their sales tactics. The regulator said their actions of Coppin and Bliss were deliberate and had been driven by their desire to get a bonus. Margaret Cole, the FSA's managing director of enforcement and financial crime, added: "By using inside information to encourage their clients to buy shares, Coppin and Bliss abused their privileged positions and gave their clients an unfair advantage over other investors. "It is important that there is a level playing field for all investors and we will not hesitate to take action to ensure that the UK markets operate in a fair, efficient and orderly way for all." The fine is the latest in a series of actions taken against former employees of Pacific Continental Securities, which ceased trading in June 2007 and was put into liquidation in 2008. The FSA has already taken enforcement action against Steven Griggs, its former chief executive, Charles Weston, former finance director, and Alexei Krilov-Harrison, a former stockbroker at the company.
Well that is more myth than reality. I watched those two days in amazement, over 90% gain on the first, and almost 70% on the second. Having only taken a small stake at that stage, most of my money was in BARC at that time, it was unbelievable that folks were prepared to pay ever more to get in. That was 09 of course, AIM was a lot livelier than today, although those caught in the WRN hype last week will bear witness to the fact that such illogicality still exists. There was but a single trade at 22, hugely over the Ask at that time, and only for a small amount. Was it a real trade? A poster laid claim to it long after, saying they had left an At Best order in. Personally I believe it was an invention of the MM's to attempt to drag it higher still. When the "No Reason" RNS was issued things naturally reversed. However, I never saw any accusation of criminality at that time, whereas the company say that they saw something happening last year that "they were not comfortable with". Presumably that related to the t/o rumour, which time has proven to be absolute tosh. If in this period buyers are seeking an entry based on the news that revenues have begun, and will grow, then it should come as a surprise to nobody, since that is what everyone expected to happen, albeit much later than most anticipated. When, not if, the revenues have grown to overtake the running costs, and a surplus is posted in financial statements, then a different type of buyer will also want a piece of the action. But that is the future, and the speculation will be all about that as things develop. I DO NOT expect a big bang, I don't hope for one either, but I suspect there will be increasingly better news over time, and the sp will reflect that. As ever, time will tell.
All sorts of movement, but no volume to explain it. Just jiggling. I don't believe that the volume will arrive from ordinary PI's. To call last year's dodgy city traders' hooliganism a "yearly rush" is plain screwy to me. The last thing we want is for Provexis to be thought of as the plaything of criminal traders. Value building now through genuine revenues increasing, hopefully the AGM statement will inform us further. We want holders, not fly by nights IMHO
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