A former managing director of Cattles Plc’s Welcome Financial Services unit was fined 100,000 pounds ($160,000) by the U.K.’s finance regulator for market abuse.
John Blake was also banned from working in the industry, the Financial Services Authority said in a statement on its website today. Blake is the third executive connected to Cattles penalized by the FSA this year. In March, James Corr, Cattles’ finance director, was fined 400,000 pounds and Peter Miller, Welcome’s finance director, was fined 200,000 pounds.
Cattles, based in Batley, England, was a subprime mortgage lender. According to the FSA, its subsidiary Welcome published “false and misleading information about the credit quality of its loan book” in its 2007 annual report, which was used in Cattles’s 2008 rights offering prospectus that raised 200 million pounds.
While Blake “failed to act with integrity,” he didn’t “deliberately conceal,” the financial position of Welcome, the FSA said. The agency could have fined him 400,000 pounds had he not provided evidence a penalty that large would cause him “financial hardship,” the agency said in its statement.
Cattles was sold last year to creditors including Royal Bank of Scotland Group Plc after its shares were suspended in 2009. It has accused PricewaterhouseCoopers Plc of accounting failures.
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