Fallout spreads in Einhorn and Punch affair Mr Einhorn, one of the world's highest profile hedge fund managers, and Greenlight were penalised £7.2m by the FSA earlier this week over their Punch trades, in the biggest scalp to date for the UK regulator in its long-running battle to crack down on market abuse. On Friday, the FSA said it had fined Alexander Ten-Holter, trader and former compliance officer at Greenlight, £130,000 for "failing to question and make reasonable enquiries" before selling the hedge fund's shareholding in Punch in the days before it issued new equity. The FSA has also fined Caspar Agnew, a trading desk director at JP Morgan, £65,000 for "failing to identify and act on a suspicious order from Greenlight to sell Punch shares that allowed the firm to be used to facilitate insider dealing or market abuse." "As a result of his failings JP Morgan Cazenove failed to identify the trade as suspicious and report it to the FSA," the FSA said. The fines announced on Friday are part of a larger effort by the FSA to hold firms and market professionals to account when they fail to question or stop suspicious trading. The hedge fund manager has called the penalty "unjust" and said he settled to get the process over with. According to the FSA's final notice in Mr Einhorn's case, the hedge fund manager took part in a phone call with Punch's broker and its management shortly before the equity fundraising. Mr Einhorn had told the broker, Andrew Osborne, he did not want to be "wall crossed" - given confidential information that would prevent him from trading. The FSA is seeking to fine Mr Osborne about £350,000 for his role in the affair. Mr Osborne, who resigned from Bank of America Merrill Lynch late last year, is considering whether to appeal against the fine to a tribunal. People familiar with his views said Mr Osborne, who served as corporate broker for the UK pubs company, consulted lawyers throughout his June 2009 interactions with Mr Einhorn and does not believe he gave the hedge fund executive inside information. Tracey McDermott, the FSA's acting director of enforcement and financial crime, said: "Ten-Holter's approach to compliance oversight was wholly inadequate.