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In a case brought by the Financial Services Authority (FSA), Rupinder Sidhu, a management consultant, was today found guilty of 22 counts of insider dealing at Southwark Crown Court and sentenced to two years imprisonment. Sidhu was found not guilty on one other count of insider dealing.
In a case brought by the Financial Services Authority (FSA), Rupinder Sidhu, a management consultant, was today found guilty of 22 counts of insider dealing at Southwark Crown Court and sentenced to two years imprisonment. Sidhu was found not guilty on one other count of insider dealing.
Between 15 May 2009 and 22 August 2009, Sidhu was jointly involved with another individual, Anjam Ahmad, an ex-hedge fund trader and risk manager with AKO Capital LLP (AKO), in insider dealing in 18 different UK and European listed shares, based on inside information obtained by Ahmad in his role as a trader at AKO about forthcoming transactions by AKO in those securities. Sidhu placed spread bets in relation to those securities and made approximately £ 524,000 profit.
In passing sentence His Honour, Judge Gledhill QC, commented:
“You are greedy. Sheer greed is behind all these offences.”
The case is the sixth successful prosecution for insider dealing bought by the FSA and is part of its ongoing drive to tackle market abuse and promote efficient, orderly and fair markets.
Tracey McDermott, acting director of enforcement and financial crime, said:
“This is another step in our fight against market abuse. Sidhu embarked on a sophisticated scheme which was designed to enable him to profit from exploiting confidential price sensitive information. And for a time he no doubt thought this was easy money. This verdict should send a clear message to anyone else who might be tempted to do the same. Insider dealers are criminals, no more and no less, and we will treat them as such.”
The confiscation hearing will take place on 30 March 2012.
On 22 June 2010 Anjam Ahmad was sentenced to 10 months imprisonment, suspended for two years, 300 hours of unpaid work in the community and fined £50,000 for insider dealing. Ahmad pleaded guilty to one count of conspiracy to commit insider dealing. A further offence of insider dealing committed on 19 February 2008 was taken into consideration.
Background
- The FSA has so far secured 11 convictions in relation to insider dealing:Christopher McQuoid and James William Melbourne in March 2009; Matthew and Neel Uberoi in November 2009, Malcolm Calvert on 11 March 2010, Anjam Ahmad on 22 June 2010, Neil Rollins on 21 January 2011, Christian Littlewood and Angie Littlewood on 8 October 2010 and Helmy Omar Sa'aid on 10 January 2011 and Rupinder Sidhu on 15 December. Details of each case are available on the FSA website.
- The FSA is currently prosecuting 15 other individuals for insider dealing:
Name Trial date Bijal Shah Trial commencing 27 February 2012 Truptesh Patel Trial commencing 27 February 2012 Paresh Shah Trial commencing 27 February 2012 Mitesh Shah Trial commencing 27 February 2012 Neten Shah Trial commencing 27 February 2012 Ali Mustafa Trial commencing 27 February 2012 Pardip Saini Trial commencing 27 February 2012 James Paul Sanders Trial commencing 16 April 2012 Miranda Sanders Trial commencing 16 April 2012 Christopher Hossain Trial commencing 16 April 2012 James Swallow Trial commencing 16 April 2012 Adam Buck Trial commencing 16 April 2012 Thomas Ammann Trial date to be confirmed Christina Weckwerth Trial date to be confirmed Jessica Mang Trial date to be confirmed - The Financial Services and Markets Act 2000 gives the FSA powers to investigate and prosecute insider dealing, defined by The Criminal Justice Act 1993.
- Individuals with information about market abuse can call the FSA’s market abuse hotline on 020 7066 4900.
- The FSA regulates the financial services industry and has four objectives under the Financial Services and Markets Act 2000: maintaining market confidence; securing the appropriate degree of protection for consumers; fighting financial crime; and contributing to the protection and enhancement of the stability of the UK financial system.
