Overview
- Richard Adam was fined £232,800 and Zafar Khan £138,900 after both withdrew their challenges, bringing total penalties to £371,700.
- The FCA said both men knew of serious financial troubles in Carillion’s UK construction business yet failed to reflect this in market announcements or alert the board and audit committee.
- The regulator found they acted recklessly and were knowingly concerned in breaches of the Market Abuse Regulation and Listing Rules, including issuing misleading signals about the company’s shares.
- The penalties were reduced from amounts proposed in 2022 and included 10% discounts for cooperation, with Khan saying he settled because he could no longer afford to fund a defense.
- Related proceedings continue as former chief executive Richard Howson disputes the FCA’s findings ahead of an Upper Tribunal hearing on 16 February 2026, while earlier fallout included a record FRC fine on KPMG over Carillion’s audits.