RegulationJan 16 2017

FCA insider dealing case sees two sentenced

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FCA insider dealing case sees two sentenced

A prosecution brought forward by the Financial Conduct Authority has seen two men sentenced in respect of three separate counts of insider dealing.

Manjeet Mohal, a former employee of Logica, a multinational IT and management consultancy company, has been sentenced to ten months imprisonment which are suspended for two years, in respect of two counts of insider dealing.

He was also ordered to undertake 180 hours of community work.

Reshim Birk, a neighbour of Mr Mohal’s, was sentenced to 16 months imprisonment which are suspended for two years in respect of one count of insider dealing.

He was ordered to undertake 200 hours of community work.

A confiscation order of £162,876.69  was made against Reshim Birk.

During his employment at Logica, Mr Mohal came into possession of inside information relating to a takeover of Logica by European firm CGI Holdings which he disclosed to his neighbour, Reshim Birk, and another individual.  

Mr Birk then traded in shares and options relating to Logica while in possession of that inside information and made profits in excess of £100,000.

Prosecution costs of £42,593.35 were awarded to the FCA in respect of each defendant.

In sentencing HHJ Cooke QC remarked: "But for the diligence of those investigating, he [Birk] may have got away with it".

Mark Steward, executive director of enforcement and market oversight, 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.”

ruth.gillbe@ft.com