Confiscation Orders Made Against Insider Dealers

The Financial Conduct Authority (FCA) has recently announced that Confiscation Orders totalling £3,249,488.71 have been made against seven men who had previously been convicted of offences relating to Insider Dealing.

Six of the men had been convicted of making a combined profit of £732,044.59 on trading between 1st May 2006 and 31st May 2008, and received prison sentences of varying lengths in 2012. The seventh man was sentenced in 2013 to four years imprisonment for Insider Dealing offences. His trading resulted in a net profit of £591,117 on trading between September 2007 and July 2008.

The total amount confiscated exceeds the profits generated as a result of the application of the confiscation regime which allows the court, in appropriate cases, to assume that the profits from other trading that took place within the same period represent the proceeds of crime.

The FCA, and previously the Financial Services Authority, have already secured 24 convictions in relation to insider dealing, and says that it is currently prosecuting eight other individuals for insider dealing offences.

“The FCA has made it clear that we will use all of the tools at our disposal to ensure that our markets are clean,” commented Tracey McDermott, director of Enforcement and Financial Crime. “These individuals engaged in a sophisticated scheme to try and make easy money by exploiting inside information. As a result they have not only lost their liberty, their livelihoods and their reputations but they have also now been ordered to pay significant sums in confiscation.”

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