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Hedge fund Greenlight fined for market abuse

LONDON/NEW YORK (Reuters) – U.S. hedge fund Greenlight Capital and its high-profile owner David Einhorn were fined 7.2 million pounds by Britain’s financial regulator, after the manager used inside information to sell shares in a UK pub company before a fall in the price.

Britain’s Financial Services Authority (FSA) said on Wednesday it had fined Einhorn 3.64 million pounds ($5.67 million) and his Greenlight Capital 3.65 million pounds for market abuse.

Einhorn learned from a telephone conversation, held with a broker in 2009, that British pub company Punch Taverns was on the verge of a significant equity fundraising, prompting Einhorn to sell down his holdings before an expected fall in the shares, the FSA said in a statement.

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