City Stockbroker's Rogue Trade Cost Company Over £2 Million

A rogue City trader whose shares "gamble" resulted in £2million-plus losses was told he faces prison after admitting a cover-up involving over four million HSBC shares.

Jonathan Bunn, 31, of The Villiers, Gower Road, Weybridge, Surrey, a broker with Bishopsgate-based Lewis Charles Securities Ltd. hoped the share price he would pay after agreeing unauthorised sales would plunge - resulting in huge profits.

However, the price he had to pay rose, wiping out any potential profit, leaving the company in the red and Bunn's immediate boss Loizou Stavros with a £350,000 personal loss.

Prosecutor Mr. David Levy told Southwark Crown Court: "It was a gamble. The defendant hoped the shares would drop. He made no personal gain, but there was a massive loss."

Bunn pleaded guilty to falsifying a document required for an accounting purpose, namely a trade slip, which was misleading, false or deceptive regarding 4,350,000 HSBC shares between July 22 and 23, last year contrary to the Theft Act.

He denied that between July 20 and 31, 2009 he dishonestly abused his position by engaging in unauthorized trades resulting in losses in excess of £2 million, contrary to the Fraud Act and that count will lie on the file.

"The defendant has accepted the totality. He has acted improperly in his position as a trader by engaging in trades where he agreed to sell shares before he bought them," explained Mr. Levy.

"The defendant is responsible for these losses and caused a personal loss to the owner in excess of three hundred and fifty thousand pounds."

The Recorder of Westminster Geoffrey Rivlin QC told Bunn: "This is a very serious matter. You know I cannot make any promises and custody is the likely sentence.

"I don't want you to read anything into the fact I am granting you bail," added the Judge, bailing Bunn until June 24 for a pre sentence report on condition he resides at his recorded address, reports twice a week to police and cooperates with the probation service.

The Financial Services Authority were alerted to the rogue trades and alerted the City of London Police's Economic Crime Department.