The tribulations of British investor Alan E. Clore were responsible for almost all of the up to $10-million loss that the Jefferies & Co. securities firm incurred in October because of the stock market plunge, it was revealed Tuesday.
KaiserTech Chairman Clore disclosed in a filing with the Securities and Exchange Commission that he placed orders with Jefferies in October for $17.2 million of KaiserTech stock but never paid for the shares.
In addition, Jefferies purchased more of Clore's KaiserTech stock in October when the investor defaulted on a margin loan, leaving the Los Angeles securities firm with nearly 1.4 million shares of KaiserTech stock, or about 3% of the company's common stock.
If the KaiserTech stock were sold at the Tuesday's closing price at $10 per share on the New York Stock Exchange, Jefferies would incur a roughly $8-million loss. A total of 949,700 shares were purchased for Clore by Jefferies between Oct. 2 and Oct. 20 at prices ranging from $15.4312 to $20.406, according to the filing.