Third trader ensnared by FCA probe pleads guilty

A former senior execution trader at hedge fund Moore Capital Management has pleaded guilty to eight instances of insider dealing, which yielded profits exceeding £250,000.

Julian Rifat is the third individual pleading guilty to insider dealing offences arising out of Operation Tabernula, the Financial Conduct Authority’s largest and most complex insider dealing investigation, the regulator said in a statement. He will be sentenced in the New Year.

Mr Rifat admitted passing inside information, obtained during the course of his employment, to an associate, Graeme Shelley, who then traded for their joint benefit.

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Earlier this year Mr Shelley, previously a broker at Novum Securities, pleaded guilty to insider dealing with Mr Rifat and with another associate Paul Milsom, an execution trader at Legal and General Investment Management. Mr Milsom pleaded guilty to insider dealing and was sentenced in 2013.

Tracey McDermott, the FCA’s director of enforcement and financial crime, said that the regulator is committed to undertaking the painstaking analytical work which is required to bring these cases to court.

“In this case measures were taken by those involved to conceal their activities – this included communicating via unregistered ‘pay as you go’ mobile telephones and the diversion of trading profits to third parties.

“The guilty plea today is a reflection of our capability and determination to tackle these challenging and complex cases”