Court in Cyprus Revokes Penalties Against Vardinogiannis Family Regarding Allegations of Secretive Stock Dealing
In a significant development, the Administrative Court in Cyprus has accepted the appeals of Ioannis and Amalia Vardinogiannis against decisions made by the Cyprus Securities and Exchange Commission (CySEC). The court's decision marks a turning point in the long-standing dispute between the Vardinogiannis family and the regulatory body.
The Administrative Court annulled the contested decisions against both Amalia and Ioannis Vardinogiannis, and awarded each applicant legal costs of €1,700 plus VAT per appeal. Notably, the court also cancelled the €6.4 million fines imposed by CySEC on Ioannis Vardinogiannis, and a €50,000 fine on Amalia Vardinogiannis.
The fines were related to alleged breaches of securities legislation. Ioannis Vardinogiannis was accused of violating Article 9(1)(a) of Law 116(I)/2005 by acquiring shares of a company while in possession of insider information. Meanwhile, Amalia Vardinogiannis faced charges under Article 41 of the Cyprus Securities and Exchange Commission Law of 2009 (Law 73(I)/2009) for providing false, misleading, and deceptive information to investigating officers and CySEC.
The alleged offenses date back to 2007, when Amalia Vardinogiannis purchased shares of Sea Star Capital from her brother and then sold them, earning €6.4 million in profits. The insider information allegedly related to changes in the company's shipping operations and to Ioannis Vardinogiannis's participation in its share capital.
The Administrative Court's decision to annul the fines was based on concerns about the regulatory process, including issues with the composition of CySEC. The court found that the Commission was improperly constituted due to changes in its members during different sessions and the participation of certain individuals whose qualifications were not sufficiently justified, including Commission member Kypros Ioannides.
This decision suggests that procedural or administrative deficiencies, such as potential improper composition of the commission, played a role in the annulment. However, the specific details of the court's reasoning about the composition concerns are not fully detailed in the available search result.
This ruling is expected to have far-reaching implications for the Vardinogiannis family and CySEC, and may prompt a reevaluation of the regulatory body's practices and procedures. As the case continues to unfold, it serves as a reminder of the importance of due process and fair treatment in regulatory matters.
The Administrative Court in Cyprus has overturned the fines imposed on Ioannis and Amalia Vardinogiannis by CySEC, each receiving legal costs of €1,700 plus VAT per appeal. This decision was made due to concerns about the regulatory process, including issues with the composition of CySEC, raising questions about the validity of past decisions and potentially influencing future business and finance-related activities in Cyprus.
