Magazine article Risk Management

Financial Crime in the UK

Magazine article Risk Management

Financial Crime in the UK

Article excerpt

Following record-setting enforcement in 2012, the UK Financial Services Authority's (FSA) crackdown on insider trading has continued in 2013. The regulator secured a record 10 convictions in 2012 and has five more cases set for this year, having already secured two convictions since January. The new cases will be taken on by the FSA's successor, the Financial Conduct Authority (FCA).

One of the most notable cases this year involved Richard Joseph, a 43-year old former self-employed futures trader. Joseph, acting on insider tips he received about upcoming mergers, made a profit of approximately $1 million. In March, he was sentenced to four years in prison after being found guilty of six insider trading charges. The FSA also secured the conviction of Paul Milsom, a former senior equities trader at Legal & General, who was jailed for two years for disclosing inside information.

More significantly, the regulator's "Operation Tabernula" case, its most complex investigation to date, is likely to reach the courts. The FCA has charged five men, including Martyn Dodgson, a former managing director at Deutsche Bank, with various insider-dealing offenses. They are alleged to have made $4.5 million from their trading. A number of other individuals remain under investigation in this wide-ranging insider-dealing probe that began two years ago with coordinated raids on 16 locations across London. The case will be a stern test of the regulator's criminal powers.

Aside from the continuing investigations, an upwards trend in sentencing for insider trading has developed, as the regulator takes on more serious cases. …

Search by... Author
Show... All Results Primary Sources Peer-reviewed

Oops!

An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.