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The Financial Conduct Authority has successfully prosecuted two individuals for insider dealing, one for passing on inside information he acquired at work and the other for trading on the basis of that information.
Manjeet Mohal, while an employee of Logica Plc, became aware of inside information on a proposed takeover of Logica which he disclosed to his neighbour, Reshim Birk. Mr Birk then traded in shares and options relating to Logica, making profits in excess of £100,000.
Mr Mohal was sentenced to 10 months' imprisonment, suspended for two years. He was also ordered to undertake 180 hours of community work. Mr Birk was sentenced to 16 months' imprisonment, suspended for two years, and ordered to undertake 200 hours of community work. A confiscation order of £162,876.69 was also made against him. In addition, both men had to pay prosecution costs of £42,593.35.
Mark Steward, Executive Director of Enforcement and Market Oversight at the Financial Conduct Authority, said: "Mr Mohal was a trusted employee and he abused that position. This is another clear example for those who are tempted to insider deal, that they are more likely to be caught than ever before".