The Cyprus Securities & Exchange Commission (CYSEC) confirmed on Wednesday an insider dealing fine of EUR 6.4m ($7.5m) against Greek ferry executive Ioannis Vardinoyiannis.
The original fine over exactly the same amount was levied more than eight years ago, as TradeWinds reported at the time.
Vardinoyiannis had then vowed to appeal the decision. Neither Vardinoyiannis spokesmen nor CYSEC officials were available today to elaborate on the circumstances that led the Cypriot authorities to restate the penalty.
According to a statement on CYSEC's website, Vardinoyannis breached stock-exchange law back in 2007 by purchasing through his sister Amalia, whom the CYSEC considers a proxy, about 19.36m shares of Sea Star Capital Plc.
The insider trading consisted in the knowledge that the company, which was then known as Megabet Public Co, was about to change its business purpose to become a shipping investment vehicle, the Cypriot authorities said.
The EUR 6.4m fine was calculated to offset the 367% profit the siblings are said to have made by flipping the shares on the Cyprus Stock Exchange at a higher price.
Stock market filings on Sea Star Capital's website show the company has been inactive since 2016.
The year before, it held a 23.2% stake in Greek ferry company ANEK Lines and a 17.1% participation in the latter's rival Hellenic Seaways.
All its assets, however, were sold to pay off debts to its Greek creditor Piraeus Bank.
Despite these sales, however, Ioannis Vardinoyiannis remains chief executive of ANEK Lines.
His sister Amalia is the company’s biggest shareholder with a 26.6% stake. Piraeus Bank is the second-biggest with 24.2%.
