Regulation  

Logica co-conspirator fined £35,000 for insider dealing

Logica co-conspirator fined £35,000 for insider dealing

The Financial Conduct Authority has fined Kenneth Carver £35,212 for insider dealing, following the conviction of Logica Plc group reporting and financial planning manager Ryan Willmott last week.

In a final notice, published today (30 March), it was revealed that Mr Carver, a retired accountant, purchased 62,000 shares in Logica on the basis of information family friend Mr Willmott provided to him.

Mr Willmott held inside information relating to a potential takeover of Logica through his employment at the group.

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On 31 May 2012, CGI publically announced its intention to make a cash acquisition of Logica at a significant premium, which caused the share price to increase by 59.8 per cent. Shortly after the announcement Mr Carver sold all his shares, making a profit of £24,206.

Georgina Philippou, acting director of enforcement and market oversight at the FCA, said that he knew that there was a risk of market abuse and traded anyway.

“He used his own funds to place a trade on Willmott’s behalf and knew he had a financial incentive to persuade him to trade.

“Market abuse is a serious offence and today’s fine reflects the fact that we will not hesitate in taking action against individuals who act on inside information.”

Mr Carver’s fine level was reduced due to his significant cooperation with the FCA’s investigation, providing a detailed account of events at an early stage, alongside evidence of serious financial hardship.

He also settled at an early stage of the regulator’s investigation. Had it not been for this, the Authority would have imposed a financial penalty of £122,212.

Mr Willmott pleaded guilty to insider dealing on 26 February and on 27 March was sentenced to 10 months imprisonment.

peter.walker@ft.com