A counterfeit trader named Samuel Nathan Kahn was a key player in a boiler room scheme that defrauded 800 victims out of £ 3.7 million by selling them worthless company shares. Let’s get into the details of the narrative:
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Samuel Nathan Kahn: Received a penalty of £1.09 million for share accelerating and market manipulation
Three years after declaring stock market trader Samuel Nathan Kahn bankrupt due to his involvement in a “boiler-room” scheme, the Financial Services Authority (FSA) has fined him £1.09 million for share ramping.
Market Abuse and Manipulation of Global Brands Licensing (GBL)
However, despite abuses such as pretending to be share buyers and manipulating share prices, the regulator claimed there was insufficient proof to result in a criminal conviction. Kahn consented to pay the penalty.
The FSA instead requested a high court injunction that prevents Kahn from engaging in additional market abuse, acknowledging that insider trading convictions are challenging to secure. He might go to jail if he continues to assault people.
The FSA first investigated Kahn’s involvement in international boiler room activities. Kahn is 40 years old and resides in Salford.
What is a boiler room scandal?
Boiler room scams are elaborate operations that employ high-pressure sales techniques to entice as many participants as possible to an investment hoax. Operators of boiler room schemes may make cold calls to potential investors or reach out to them via emails, texts, social media, and other channels.
In regard to claims totaling £3.7 million from roughly 800 UK investors, he acknowledged guilt in October 2007. He later entered an IVA, though, and was able to avoid making a payment.
In order to be able to offset the whole amount of his investor debt against his estate, the FSA declared Kahn bankrupt in 2008.
Kahn’s operations were unaffected by the bankruptcy. The share price of a minor business, Global Brands Licensing (GBL), traded on the Plus stock exchange, was artificially inflated by Kahn in March 2010 during what the FSA called a “month-long campaign of market abuse.”
The action of the FSA
The FSA claims that Kahn purchased a significant amount of GBL shares at 2p per share and then pretended to be other traders to create the impression that there was real interest in the business. His actions contributed to the GBL share price more than doubling to a high of 5.25p in just four weeks.
The FSA inquiry discovered that Kahn manipulated 85% of the purchase trades and 91% of the sell trades of GBL for his own financial gain, as well as to support tax relief fraud and boiler-room activities.
In order to conceal his involvement in the scheme, Kahn repeatedly pretended to be someone else when placing orders to trade GBL’s shares and coordinating trading by third parties, according to the FSA. “Kahn orchestrated and controlled the vast majority of the trading in GBL’s shares in March and April 2010,” the agency said.
The FSA discovered that at Kahn’s request, the earnings he gained from this trading were taken out of a third party’s bank account and sent to him in cash.
In order to benefit from tax benefits, the rogue trader also pretended to be an employee of a legitimate charity, according to the regulator. However, his ambitions were derailed on April 30, 2010, when the Plus exchange stopped trading in GBL.
The order against Kahn that the FSA has obtained is the first of its sort that the regulator has attained. “Given Kahn’s history of misbehavior and prior FSA sanctions against him, the FSA considers his behavior to be very serious.
As interim director of enforcement and financial crime at the FSA, Tracey McDermott stated, “The FSA will not tolerate this type of repeat behavior and will use all of our powers to ensure credible deterrence.”
Some experts, however, disagreed and suggested that the watchdog concentrates on preventing more widespread market misuse, which, according to its own data, is still potential in about one-third of all UK takeovers.
This is a first for the FSA, according to Simon Morris of the law firm CMS Cameron McKenna, who also noted the extremely large fine that was determined under the new punitive basis. The fact that a fringe operator is breaking the law in this instance is common.
The possibility that the City would not take the message seriously persists until FSA investigates widespread insider dealing, which it has previously indicated to be common, particularly in the new issue market.
Samuel Nathan Kahn: The final notice of FSA (Financial Services Authority)
The penalties against the Samuel Nathan Kahn
Samuel Kahn received a Decision Notice from the Financial Services Authority (FSA) on April 15, 2011, informing him that the FSA had chosen to punish him with £1,094,900 for participating in market abuse as that term is defined by the law, in accordance with the Financial Services and Markets Act 2000.
The aspects of the penalty are as follows:
(a) disgorgement of the financial gain resulting from the market abuse in the amount of £210,563.22 (excluding interest), which represents the financial gain attained by Samuel Nathan Kahn as a result of the actions detailed in this Notice.
(b) after deducting the aforementioned settlement discount, an additional fine of £884,365.
The FSA rounds down final penalty amounts to the closest £100 as per policy, resulting in a pecuniary penalty of £1,094,900.
Samuel Nathan Kahn: the case background
A plan to distort the stock shares of Global Brands Licensing (GBL), a business listed on the PLUS Quoted market, was discovered to have been put together by Mr. Kahn between the dates of 24 March and 30 April 2010.
In addition to placing several purchase and sale orders for GBL stocks on behalf of both Charity A and Company B, he also coordinated transactions for other people (Private Investors) and put buy orders in his own name.
Mr. Kahn’s goal was to artificially increase the share price in order to manipulate the market, and this trading accounted for a sizeable portion of GBL’s share activity during that time.
In spite of having no official affiliation with Charity A or Company B, he submitted orders on their behalf by pretending to be a director or trustee of Charity A. He wanted to cover up the plan and his part in it, so he did this. GBL’s share price rose significantly as a result of the plan, reaching a high of 5.25 pence, however, finally trading in GBL shares was halted due to suspicious activities.
Through the trading of Company B, Mr. Kahn received direct financial gain from the program in the amount of £210,563.22. A considerable amount of GBL’s shares were donated to registered charities as part of the scheme, which also included other boiler room activities. This was done in order to benefit from tax deductions.
Because of its purposeful character and significant market impact, the Financial Services Authority (FSA) considered Mr. Kahn’s behavior to be very serious. He had a track record of past wrongdoing, and the FSA took these things into account when figuring up the right financial penalty.
According to the Financial Services and Markets Act of 2000 (FSMA), the FSA has the authority to levy a monetary fine for market abuse. The FSMA’s section 118(5), which describes market abuse as actions that creates a false or deceptive impression of the pricing or demand for qualified investments, applied to Mr. Kahn’s actions.
The FSA assessed a fine of £1,094,900 against Samuel Nathan Kahn in light of the gravity of his actions and the financial gain he made. Five steps were used to determine the punishment, including disgorging the cash gain received and taking aggravating and mitigating circumstances into account.
If Samuel Nathan Kahn chose to settle the case early, the financial penalty will be reduced by 30%. If the penalty is not fully paid by the deadline, the FSA may take action to collect the unpaid sum as a debt.
The FSA also has the power to publish information regarding the situation, which they aim to do in a suitable way while taking consumer interests and fairness into consideration.
Where is Samuel Nathan Kahn currently located?
Samuel Nathan Kahn, who was once threatened with bankruptcy by the FSA, is skilled at getting back up after being struck down. He employs this desire and drives to support his customers, who have also encountered struggles and setbacks in life.
Samuel Nathan Kahn is presently dedicating all of his time to helping his neighborhood and other charities in Manchester, United Kingdom. His company specializes in counseling clients who have been duped and have lost money as a result of either incompetent financial planners or even misleading information.
Samuel Nathan Kahn and his colleagues put in a lot of effort in every instance to recover their clients’ stolen funds because they are only compensated if their clients are.
Now I’d want to discuss a few significant organizations that I used in my details for you, such as:
About FSA (Financial Services Authority)
Between 2001 and 2013, a quasi-judicial organization called the Financial Services Authority (FSA) was in charge of overseeing the UK’s financial services sector. Securities and Investments Board (SIB) was its original name when it was established in 1985.
Even though it operated outside of government, the Treasury appointed its board. Its funding came exclusively from fines levied against the financial services sector and was set up as a business limited by guarantee.
The UK government made the decision to reform financial regulation and eliminate the FSA due to perceptions that the banks’ regulatory failures during the 2007–2008 financial crisis.
The Financial Services Act of 2012, which was approved on December 19, was put into effect on April 1, 2013, abolishing the FSA.
Hector Sants served as the FSA’s CEO until the end of June 2012 after announcing his departure on March 16, 2012. Lord Turner of Ecchinswell served as the FSA’s chairman until it was abolished.
With a second location in Edinburgh, its primary office was located in Canary Wharf, London. It was known as the UK Listing Authority (UKLA) when operating as the competent authority for listing shares on a stock exchange and maintaining the Official List.
Conclusion
Finally, the Financial Services Authority (FSA) has issued substantial penalties of £1.09 million on Samuel Nathan Kahn for his role in market abuse and manipulation through his “boiler-room” schemes and share ramping.
The FSA decided to seek an injunction from the high court rather than pursue criminal charges against Kahn since there wasn’t enough evidence to support one.
The FSA inquiry found Kahn’s substantial manipulation of Global Brands Licensing (GBL) shares, creating the appearance of real interest in the business while reaping financial rewards and promoting tax relief fraud and boiler-room activities.
Samuel Nathan Kahn went to considerable measures to hide his conduct, posing as other people and arranging exchanges through intermediaries.
The FSA’s forceful response demonstrates its dedication to stopping market exploitation and establishing effective deterrence against repeat offenders like Kahn. Experts disagree, though, and contend that attention should also be paid to preventing more pervasive market abuse, which is still a risk in many UK takeovers.
While the FSA’s measures against Kahn are an important first step, ongoing vigilance is required in identifying and combating insider trading, especially in the new issue market. Financial regulators must be tenacious in their pursuit of wrongdoers and the interests of investors as they work to uphold integrity and fairness in the financial markets.
Therefore, I described Samuel Nathan Kahn’s entire story in relation to his scams and unlawful activities. He is simultaneously passing off himself as a talented content writer while actually being a shady scam artist by employing false PRs. What do you think of him now that you’ve read the information I’ve supplied on him? I’ve included the following link to support his argument regarding false PRs:
- Samuel Nathan Kahn | Salford Lancashire, United Kingdom (wordpress.com)
- https://www.digitaljournal.com/pr/successful-businessman-samuel-nathan-kahn-on-growing-from-mistakes
It is hard for me to believe that this guy doing these types of activities and deceiving many victims by offering them various useless company shares. This is the reason why most people do not try to invest in the market.
These criminals try to manipulate the share prices mislead the investors and indulge in market abuse. The FSA charged this man £ 1.09 million for giving the wrong advice to the people and earning the money. But the the FSA had to charge some more penalties to these fraudsters.
These bogus schemes are only created in order to conn a large number of the population. The regulatory authority of the country has to take some strict action against these types of people who have taken advantage of the people to maintain their lavish lifestyles. It is better to stay away from these people who indulge in these types of fraud.
How the person who is a great writer and also advice on how to write the best blog post. Now this kind of person was involved in the fraud schemes and conn many investors. It’s difficult for people to believe that this man indulged and promoted these scandals.
If people like Samuel Nathan Khan really wanted to refund the funds of their clients then why did he scam their clients and execute the boiler room? Now these people only try to get the client’s attention so they can easily promote unlawful activities and nothing else.
I really want to thank the author who was covering these articles which helped people to identify these fraudsters. It is good to see that these fraudsters were punished by the regulatory authority.