A London-based trader has been ordered to pay $US7.7 million ($11.8 million) in a civil case brought by the US Securities and Exchange Commission (SEC). Joseph El-Khouri was previously charged in 2019 in New York, along with five others, for alleged involvement in a large international insider trading ring. One of those charged alongside El-Khouri was former Goldman Sachs Group investment banker Bryan Cohen.
The judgement against El-Khouri was issued by a judge in Manhattan federal court on Wednesday after the trader failed to respond to the SEC’s allegations. The SEC is a US government agency responsible for enforcing securities laws and regulating the securities industry. It aims to protect investors, maintain fair and efficient markets, and facilitate capital formation.
The order includes $US2.4 million in what the SEC deems illegal trading profits, in addition to interest and a civil fine. It remains unclear whether US authorities will be able to recover the full amount from El-Khouri, who holds dual citizenship in the UK and Lebanon. El-Khouri had previously contested extradition to the US to face the charges.
Last year, the UK Supreme Court blocked his extradition, asserting that the alleged conduct occurred outside of US jurisdiction. This ruling paved the way for the SEC to pursue the case through civil proceedings, culminating in the recent default judgement.
