Financial Conduct Authority  

FCA case sees guilty plea to insider dealing

FCA case sees guilty plea to insider dealing

A case brought by the Financial Conduct Authority has seen two men plead guilty to insider dealine.

On the third day of the trial in a case brought by the Financial Conduct Authority (FCA), Manjeet Mohal, a former member of Logica's finance team, and his neighbour, Reshim Birk, pleaded guilty to three counts of insider dealing. They will be sentenced on 13th January next year. 

Mr Mohal worked for many years in Logica's finance team and was a trusted member of the management reporting team. In May 2012, he became privy to inside information relating to the proposed takeover of Logica by CGI Holdings (Europe) Ltd. 

Mr Mohal pleaded guilty to two counts of the illegal disclosure of that information. 

His neighbour, Mr Birk, pleaded guilty to one count of insider dealing. Using inside information from Mr Mohal, he bought shares and options in Logica two days before the takeover was announced, making a profit of more than £100,000. 

No evidence was offered against Surinder Sappal, a third defendant in the case. 

“We are determined to do whatever is required to curb insider dealing and other market abuse to protect both the investing public and market integrity," said Mark Steward, executive director of enforcement and market oversight at the FCA. 

"We will continue to prosecute cases and hold wrongdoers accountable where there is sufficient cause.”

As part of the same investigation, Ryan Wilmott, formally a senior manager at Logica, was sentenced to 10 months in prison for two counts of insider dealing. Kenneth Carver, a retired accountant and friend of Mr Wilmott's was also fined £35,212 for dealing in Logica shares using inside information.