The arrests last February of Mr. Linderum and a colleague led to the collapse of their roughly $100 million hedge fund, Lodestone Investment Partners LLP. Seven people lost their jobs.
Nearly 10 months later, the Financial Conduct Authority dropped the investigation of the two Lodestone executives and a third trader from another hedge fund who was arrested at the same time. The investigation’s outcome underscores the challenges facing the agency as it tries to remake itself as a tough-on-crime financial watchdog after years of rarely prosecuting such cases.
‘Enforcement 40’ for 2020
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