FSA insider dealing case leads to two-year prison sentence

An insider dealing case brought to court by the Financial Services Authority has resulted a in a two year prison senence.

Management consultant Rupinder Singh was found guilty of 22 counts of insider dealing and not guilty of one other count.

The offences relate to a three-month period in 2009 and was joined by former hedge fund trader and risk manager Anjam Ahmad in insider dealing in 18 different UK and Europe-listed stocks.

Trading was based on information obtained from AKO Capital by Ahmad, with spread bets netting Singh profits of £524,000.

Tracey McDermott, acting director of enforcement and financial crime at the FSA, says: “This is another step in our fight against market abuse. Sidhu embarked on a sophisticated scheme which was designed to enable him to profit from exploiting confidential price sensitive information. And for a time he no doubt thought this was easy money.

“This verdict should send a clear message to anyone else who might be tempted to do the same. Insider dealers are criminals, no more and no less, and we will treat them as such.”

Ahmad was sentenced to 10 months imprisonment suspended for two years, 300 hours of unpaid work in the community and a £50,000 fine in 2010.

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