In a prosecution brought by the Financial Services Authority (FSA) Thomas Ammann has pleaded guilty to two counts of insider dealing and two counts of encouraging insider dealing. Ammann will be sentenced on a date to be confirmed.
Two others, Jessica Mang and Christina Weckwerth, were today acquitted of one count of insider dealing each after a trial heard at Southwark Crown Court.
Thomas Ammann was an investment banker working at Mizuho International plc (MIP). In late 2008 and 2009 MIP was advising Canon, the multi-national technology company, on its acquisition of Océ, a medium sized Dutch company making photocopiers, scanners, related software and accessories. Ammann was one of the very small team at MIP working on the acquisition and had access to inside price sensitive information.
Ammann passed information to Weckwerth and Mang and encouraged them to trade in the shares of Océ prior to the acquisition being announced. Both considered Ammann to be their boyfriend and had no idea of the existence of the other. Following the announcement of the acquisition of Océ both Weckwerth and Mang sold their shares for a substantial profit. Weckwerth made Eur 1 million and Mang £29,000 and both shared half their profits with Ammann.
Tracey McDermott, director of enforcement and financial crime, said:
“As an approved person Ammann knew he could not deal using the inside information he had without arousing suspicion but he thought that by getting his girlfriends to trade instead they could avoid being caught. He was wrong, and he now faces the consequences.
“The charges against Weckwerth and Mang were serious and we considered that the evidence provided a proper basis to put the case before a jury for them to decide. Criminal prosecutions are integral to the FSA’s long term strategy of delivering credible deterrence and combating city wrongdoing.”
The FSA makes no criticism of Mizuho International plc.
The FSA thanks the Cyprus Securities and Exchange Commission (CYSEC), the Public Prosecutors Office in Frankfurt and the police and prosecution authority in Hessen, Germany, for their assistance.
Background
1. No criticism is made of any firms or banks involved.
2. The FSA has previously secured 20 further 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, Rupinder Sidhu on 15 December 2011, and James and Miranda Sanders together with James Swallow in May 2012 and Ali Mustafa, Pardip Saini, Paresh Shah, Neten Shah, Bijal Shah and Truptesh Patel on 27 July 2012. Details of each case are available on the FSA website.
3. The FSA is currently prosecuting 5 other individuals for insider dealing:
Richard Joseph 28 January 2013
Martyn Dodgson Trial date to be confirmed
Andrew Hind Trial date to be confirmed
Benjamin Anderson Trial date to be confirmed
Iraj Parvizi Trial date to be confirmed
4. The Financial Services and Markets Act 2000 gives the FSA powers to investigate and prosecute insider dealing, defined by The Criminal Justice Act 1993.
5. Individuals with information about market abuse can call the FSA’s market abuse hotline on 020 7066 4900.
6. 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.
7. The FSA will be replaced by the Financial Conduct Authority and Prudential Regulation Authority in 2013. The Financial Services Bill currently undergoing parliamentary scrutiny is expected to receive Royal Assent in late 2012 or early 2013, subject to the parliamentary timetable.
