Hermes cleared of accusations it artificially pushed up stock prices
A South Korean court has found Hermes Pensions Management Ltd. not guilty of stock price manipulation, throwing out charges handed to the London-based fund in January. On September 29, the Seoul Central District Court cleared Hermes of the charges, citing that no sufficient evidence was submitted by prosecutors to prove that a newspaper interview by then Hermes fund manager Robert Clements was intended to boost stock prices. Prosecutors said they would immediately appeal. In January this year, Clements was indicted for allegedly violating stock trading laws. In November 2004, Clements, whose fund had obtained a 5-percent stake in Samsung Corp., sat for an interview with the Chosun Ilbo in which he hinted that Hermes might acquire Samsung Corp. As the share price of Samsung Corp. rose with the article’s publication, Hermes sold its entire stake in the Korean company, garnering some 7.3 billion won (US$8 million) in profits.Clements is no longer an employee of Hermes; a U.K. citizen, he now lives in Israel.
