Former PwC auditor fined by FSA
Arif Mohammed fined for dealing in shares of an audit client, with prior knowledge of the client's future strategy.
A former PwC auditor has been fined £10,000 by the FSA for committing ‘market abuse’ regarding an audit client.
Arif Mohammed, a former audit manager for PwC, bought shares in audit client Delta, based on the knowledge that the company intended to sell its electrical division.p> David Mayhew, acting director of enforcement at the FSA, said: ‘Mr Mohammed, as an auditor, knew he should not be dealing in Delta shares. Similarly, the market would expect an auditor not to deal in shares of an audit client. To abuse his position by essentially cheating for personal gain, is a breach of trust and undermines the integrity of the market.’