* London tribunal upholds fines, ban on traders
* FSA said traders sought to manipulate prices in 2007, 2008
* Said manipulation disguised performance of hedge fund
LONDON, Sept 28 (Reuters) - An independent tribunal has upheld the top financial watchdog’s decision to impose lifelong bans and fines for market abuse on Swiss-based fund manager Stefan Chaligne and two former traders at U.S. investment bank Cantor Fitzgerald.
The Financial Services Authority said on Friday the London tribunal upheld a decision to fine Chaligne 900,000 pounds ($1.5 million) and to impose a 650,000 pound fine on Patrick Sejean, a former senior salesman at Cantor Fitzgerald’s London-based French desk.
The tribunal hiked Sejean’s fine to 650,000 pounds from 550,000 pounds.
Tidiane Diallo, a former junior trader at the firm, escaped a fine because the FSA accepted that he was in a position of serious financial hardship. All three are banned from working in UK regulated financial services.
The FSA said that in 2007 and 2008, Chaligne, a fund manager at the Cayman Islands-based Ivorian hedge fund, instructed Sejean and Diallo to execute orders designed to raise the closing prices of a total of nine securities traded in Europe and North America, in order to boost the value of his fund.
Chaligne, a French national, was also forced to repay the 362,950 euros in profits he gained from the manipulation.