LONDON (Reuters) - Simon Eagle, former head of a now-defunct British brokerage, was fined £2.8 million ($4 million) for market abuse and banned from working in financial services after showing "a breathtaking disregard" for his clients.

Handing down its largest-ever fine on an individual, the Financial Services Authority (FSA) said yesterday Eagle deliberately set out to ramp up the share price of UK-listed computer parts company Fundamental-E Investments (FEI) in a complex, prolonged and "abusive" scheme for his own benefit.

Eagle, who ran brokerage SP Bell, devised the scheme involving FEI, which was listed on London's junior Alternative Investment Market (AIM), and Winterflood — the broking arm of merchant bank Close Brothers.

Winterflood Securities, one of London's best-known market makers, has already been fined £4 million for its role in the scheme and has lost appeals to date.

Eagle, who has been battling a case that dates back around seven years, played "procedural games" and fought the charges "every step of the way" in one of the FSA's most prolonged investigations to date, the regulator said.

"His conduct breached the LSE's (London Stock Exchange) rules, caused significant disruption to share dealing in FEI shares and damaged confidence in the AIM market," said Margaret Cole, head of enforcement at the FSA.

"This scheme was rotten throughout and at the core was Simon Eagle. He showed a breathtaking disregard for his clients, for his duty as an approved person and chief executive and for the effect of his scheme on markets."