< Back to previous page

Seven men arrested on insider dealing charges

Published on 1 Apr 2010 under category: legal

Seven people have been charged by the financial services watchdog on 13 counts of conspiracy to deal on inside information garnered by two of the defendants from two major investment banks.

The Financial Services Authority (FSA) arrested the men in July 2008, leading to a 21 month analysis of more than 75 electronic devices, 250 witness statements and 130 individual trading accounts.

Thirty-five investigators, lawyers and support staff conducted the work, which was unrelated to the case of last month where seven London-based financiers were arrested in relation to insider dealing.

It is thought that unlawful profits totaling around £2.5 million were made by the ring.

Companies targeted by the seven men included Misys Plc, Morgan Crucible Plc, Laidlaw International, Biffa, Premier Oil, GcapMedia and Reuters Group Plc.

Another individual was arrested in a separate charge in relation to money laundering.

The charges follow a spate of crack-downs by the watchdog on insider dealing, intent to exert its muscle in the face of proposals touted by the Conservative Party to scrap its regulatory role.

Last year, Hector Sants, head of the FSA, told The Guardian: "I particularly hope that regardless of any changes to the high-level regulatory architecture in the UK that the culture, the people and the operating model that we created here at the FSA will continue to provide the effective supervision that society requires."

If you require advice on Corporate Fraud please call us on +44 (0)20 7831 0101 and ask for Dan Hyde.