- The FCA has started criminal proceedings against Bobosher Sharipov and Bekzod Avazov for insider dealing.
Mr Sharipov worked at investment bank Jefferies International Limited (Jefferies) and advised GCP Student Living Plc (GCP) on a potential takeover. Mr Sharipov is charged with leaking confidential inside information about the takeover to his close friend and business associate, Mr Avazov.
Mr Avazov is alleged to have used that confidential inside information to trade in GCP shares and spread bets to make a profit of almost £70,000. The alleged offending took place in 2021.
The FCA’s specialist market monitoring systems identified Mr Avazov’s trades as suspicious given the timing and profit. FCA analysis of public records uncovered that Mr Sharipov and Mr Avazov were former colleagues and flatmates.
Steve Smart, executive director of enforcement and market oversight at the FCA, said:
'We believe that Mr Sharipov took advantage of his position so he and his friend Mr Avazov could benefit through committing crime and gaming the system. The integrity and cleanliness of our markets rely on trust. It is right that this case is heard by the courts.'
The case was formally sent to Southwark Crown Court. Neither defendant indicated a plea.
Jefferies has co-operated fully with the FCA’s investigation.
Background
- Bobosher Sharipov’s date of birth is 13 December 1981 and Bekzod Avazov’s date of birth is 18 June 1982.
- Jefferies International Limited is authorised and regulated by the FCA.
- Bobosher Sharipov has been charged with insider dealing contrary to 52(2)(b) of the Criminal Justice Act 1993 (improper disclosure of inside information).
- Bekzod Avazov has been charged with insider dealing contrary to section 52(1) of the Criminal Justice Act 1993 (dealing in price-affected securities in relation to inside information).
- The defendants had their first appearance today at Westminster Magistrates Court.
- Insider dealing is punishable by a fine and/or up to 7 years’ imprisonment for offences that occurred during the period of these alleged offences. For offences committed on or after, 1 November 2021, the maximum sentence for insider dealing is a fine and/or up to 10 years’ imprisonment.
- Tackling financial crime is a priority under the FCA's 5-year strategy.
- The FCA enables a fair and thriving financial services market for the good of consumers and the economy.
- To report market abuse or to speak to someone about it, see our market abuse page.
