Cyprus regulator imposes EUR6.3 mln fine for insider dealing

Cyprus's securities regulator has imposed a EUR6.38 mln fine on Greek businessman Ioannis Vardinoyannis over share transactions in Cyprus-listed Sea Star Capital Plc SEAS.
The fine was related to the acquisition of some 19.35 million shares of the company in 2007 by Vardinoyannis's sister prior to the company's activities switching to shipping and Ioannis Vardinoyannis becoming a shareholder, the Securities and Exchange Commission said in a statement.
Vardinoyannis, who rejects the charges, said in a statement released from Athens that he planned to appeal the decision at the island's Supreme Court.
"The Securities Commission of Cyprus imposed an extreme, annihilating and historically unprecedented fine, punishing me for my decision to make a significant investment in Cyprus and under present circumstances overlooking — under present circumstances — the extreme circumstances this causes to broader business activity," the Greek businessman said in a statement. He said he was "shocked" by the decision.
The company switched focus from being bookmakers known as Megabet in 2007. Sea Star is involved in ship management and ship operating companies in Greece.
The transition of the company towards shipping and Vardinoyannis's role in it could have materially affected the share price of the company had that information been publicly known, the Cypriot watchdog said.
"Mr. Ioannis Vardinoyannis has violated article 9 (1) (a) of the law because while he was in possession of confidential information, and while he was aware, or should have been aware this was confidential information, acquired 19,358,487 shares in the company through his sister, Ms Amalia Vardinoyannis," the regulator said.
The shares were acquired by Amalia Vardinoyannis at 0.09 euros per share, and later sold at 0.42 euros per share, making a profit of EUR6.38 mln, it said.
Amalia Vardinoyannis, who had told authorities the share acquisition was for her own account, was imposed an administrative fine of 50,000 euros. Four other individuals were imposed lower amounts in fines, the securities regulator said.