Insider dealer jailed for eight months
A former general counsel to telecoms company TTP Communications was today jailed for three months in connection with a long-running insider dealing investigation. This is a story we covered a few days ago whereby the solicitor allegedly passed on confidential information regarding TTP Complications to his father-in-law. His father-in-law then acquired shares in the business crystallising a substantial profit of £48,000 when the company was taken over.
This is actually a watershed in the history of the FSA with insider trading a very difficult subject to police and a very difficult subject to bring the court. This is the first jail sentence handed out to an Insider Trader since the inception of the FSA in 1997 and there are rumours of further court cases in the offing. The eight-month sentence for the solicitor will send out a warning to those considering this illegal activity, although the eight-month suspended sentence against the father-in-law was a little disappointing.
It will be interesting to see how this first conviction impacts upon future insider dealing cases and whether, as hoped, it serves as a warning to others. Contrary to popular belief, insider trading is not a victimless crime as it serves to undermine confidence in the overall UK stock market which impacts upon everyone in the UK.
Share this..
Related stories
'Biggest UK banking loss in history' to be announced by RBS
RBS, Britain's second-biggest bank, is set to announce the biggest loss in the sector's history this week.According to a group of analysts, who spoke to the Reuters news agency, the firm will say on Friday that it lost £1.2 billion from January to June 2008.This is the largest single negative earnings declaration of any UK bank.Credit crunch related asset writedowns of £5.9 billion have already...
Read MoreUK gas bills hit a record high
It is estimated that the average quarterly winter gas bill for UK households will be something in the region of £616 having been boosted by £120 due to the cold snap at the beginning of 2010. This 20% increase in the average gas bill will see many people pushed into energy poverty spending more than 10% of their monthly income on their utility bills. So where will it all stop? In a nightmare...
Read MoreVodafone Announce £1 Billion Share Buy Back
In a move which is as much about good investment as it is about showing confidence in the future, Vodafone has announced a £1 billion share buy back program which will see the group buy shares in the open market for cancellation. By reducing the number of shares in issue this will push the earning per share figure higher and if it all goes to plan should see support appear at of around current l...
Read MoreTriple-Dip Recession may be avoided after all
There is fresh optimism that another period of recession, the third in just over five years in the UK, will be avoided. A report from ICAEW / Grant Thornton Business Confidence Monitor (BCM) has revealed that business confidence is now at the highest level since the second quarter of 2011. The BCM survey has forecast that, instead of another period of decline, the UK economy is set to grow by...
Read MoreBarclaycard is set to shake up the credit card sector
Barclaycard has today launched what the company believes is the "broadest ever retail rewards scheme" seen in the UK credit card industry. The new scheme has been trialled in Northampton and is set to be rolled out to the company's 8 million credit card holders from March 2010. Rather than having to apply to the scheme, all Barclaycard credit card holders will automatically be registered for the s...
Read More