Broker fined for Provexis trades

A STOCKBROKER has been fined by the Financial Services Authority (FSA) for using inside information about the Liverpool food technology business Provexis.

Alexei Krilov-Harrison, a former stockbroker at Pacific Continental Securities UK (PCS), was fined £24,000 for using the information about AIM-traded Provexis to encourage his clients to buy its shares.

In March 2007 Krilov-Harrison heard that Provexis had signed a major contract with an international food company which it was preparing to announce.

Over the course of the next 24 hours the FSA said he called three clients and told them news of the contract would make the share price “jump up substantially”.

Following the announcement – a deal with Unilever to develop the tomato-based drink Fruitflow – the company’s share price increased by nearly 20% from the closing price on the previous day.

Krilov-Harrison committed market abuse by persuading clients to buy shares said the FSA. It found that his actions had been deliberate and been motivated by his desire to receive a bonus.

Margaret Cole, director of enforcement and financial crime at the FSA, said: “Anyone who uses inside information to encourage their clients to buy shares is abusing their privileged position and cheating other honest investors. 

“This is plainly wrong. Market participants must ensure they do not pass inside information to their clients in these circumstances.”
 
Provexis is developing medical food and dietary supplement technologies including Fruitflow which thins the blood and helps circulation. The business has its headquarters in Windsor but operates its research and development base in Liverpool.