FSA smashers alleged insider dealing ring
The FSA (Financial Services Authority) has today announced the arrest of six senior professionals in the city, from a hedge fund management company, amid allegations of a long-running insider dealing scheme. This is by far and away the largest and most high-profile investigation by the FSA into alleged insider dealing and market abuse and continues the recent run of success which the authority has seen.
The FSA and the Serious Organised Crime Agency worked together on today's bust with 16 properties and businesses in London raided and a number of documents and computers taken away for further investigation. It is alleged that the six professionals from the city have been passing on inside information to traders for some time, who have then gone on to take large profits by trading on the insider information.
It is believed that the investigation has been ongoing for some time and the authorities have been aware of the alleged insider dealing ring for many months, which is described as a "sophisticated and long-running" operation. There is no doubt that the FSA has increased conviction rates dramatically in the field of insider dealing and market abuse although there is no guarantee that the six arrested today will be successfully prosecuted. We await further developments in due course.
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