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In a decision dated 6 December 2007, the AMF Enforcement Committee imposed a fine of €1.2 million on Thierry Boutin.
The decision illustrates a typical case of insider market abuse. The Committee recalled that "a person holding inside information is under an absolute obligation to refrain from trading. Accordingly, market abuse is characterised simply by establishing a connection between the time at which information is held and the time at which it is used, unless the person who is the subject of the complaint can prove that he or she had a compelling reason for making the transaction […]". That was not the situation in this case.
Further, the Committee judged that these actions had been compounded by another infringement committed simultaneously, namely the sale of a significant number of shares before a sharp fall in price. Mr Boutin had sold the shares short while he was an "insider", thereby infringing the rights of investors while compromising the orderly operation and integrity of the market.
The Committee found that such behaviour was "particularly serious" and warranted an "exemplary penalty".
An appeal may be lodged against this decision in accordance with Articles R. 621-44 to R. 621-46 of the Monetary and Financial Code.
