Rogue trader is jailed after costing LCS £2.6m in debts
A ROGUE trader who cost his employers £2.6m with a series of illegal trades was yesterday jailed for two-and-a-half years.
Jonathan Bunn, who worked for Lewis Charles Securities (LCS), bet that HSBC shares would fall, building up a short position of more than 4m shares.
The 31-year-old inter-dealer broker tried to cover his tracks by forging purchase slips saying he had buyers.
But he finally confessed with a text to his managers when he had nearly 7m shares and the price had risen.
LSC was forced to buy back £42m of the shares at close to £6. The firm had to cut salaries by 20 per cent and lay off 12 people to cover losses.
Bunn, who was arrested at his home in Weybridge, Surrey, was prosecuted by both the Financial Services Authority and City of London Police and sentenced yesterday at Southwark Crown Court. He was also banned from working in the financial services industry.
Judge Geoffrey Rivlin said: “I think I can fairly say that as a result of your very serious misconduct you have certainly made a very significant contribution to bringing this company, at least temporarily, to its knees.”