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“You knew precisely what you were doing,” Judge Jeffrey Pegden told the defendants. “The insider dealing in this case was not isolated criminal behaviour.” He said their prison terms reflected an element of deterrence, due to such cases’ time-consuming nature.
Jurors sitting on the four-and-a-half month trial heard that the mammoth FSA investigation into the ring began in 2006, when its staff noticed suspicious trades but could not link them to bank insiders.
The breakthrough came months later, when staff examined a spread bet on information company Reuters placed by Pardip Saini on May 4, 2007, three minutes after he received a text from a contact, Ersin Mustafa. Within a fortnight, Thomson agreed to buy Reuters.
Investigators discovered that Mustafa and his brother Ali worked in the printing rooms of investment banks JP Morgan Cazenove and UBS respectively.
Saini, it would emerge, was the “link man” between the insiders in the print rooms and the rest of the ring, who were not City professionals.
Through their access to the information flowing through the print rooms, which handle confidential documents on mergers and deals, those outside the banks were able to anticipate moves in companies’ share prices. They would use various accounts to place spread bets before deals were announced.
Six members of an insider trading ring have been jailed for their roles in a sophisticated scam which sparked the City watchdog’s longest and most complex prosecution to date.
The gang used sensitive information leaked from the print rooms of two of London’s biggest investment banks to place trades before takeover bids became public, netting them hundreds of thousands of pounds as share prices moved.
After a £5m prosecution by the Financial Services Authority (FSA), the six men involved in the ring were yesterday sentenced at London’s Southwark Crown Court to prison terms ranging from 18 months up to three and a half years.
The men, Ali Mustafa, Pardip Saini, Paresh Shah, Neten Shah, Bijal Shah and Truptesh Patel, were convicted earlier in the week of disclosing inside information and dealing while in possession of the data. The offences related to trading around six companies’ shares, including Biffa Group and Premier Oil, between 2006 and 2008, which brought the ring more than £700,000.
However, the court heard that to keep the complex trial becoming too unwieldy, the FSA was asked not to pursue charges around other companies’ shares which took the total potential gains to £2.25m
Such was the speed with which data was sent out, using a system of memory sticks and email accounts as a “drop box” for the copied documents, that the FSA said it was possible the ring was using the information contained in the documents to place trades before the printed versions had even reached the banks’ intended recipients.
The investigation culminated in a large raid and wave of arrests on 29 July 2008, involving more than 100 FSA staff and City of London police officers across 10 addresses in the south of England.
The FSA said the ring posed a serious threat to “ordinary and honest” investors.
Tracey McDermott, acting director of the enforcement and financial crime division, said: “They thought that by attempting to cover their tracks they would get away with their criminal conduct.”
Ersin Mustafa was not among those sentenced. He disappeared while on bail and is said to be in northern Cyprus.
I stosowny obrazek, co prawda złoto ale z Globex:Here comes Globex
Written by Eamonn Sheridan
November 22, 2012 at 22:37 GMT
Foreign Exchange never sleeps or holidays – but the futures market has a snooze occasionally.
The equity index futures on Globex were halted for some turkey; they re-open at 5pm Chicago time (2300GMT).
Globex closed 1391.50 on the ES, 2600 on the NQ.
Nie żeby jakiś zaskakujący news ale z czymś takim trudno szukać risk offGreek lenders have agreed on measures to reduce Greek debt to 130% of GDP by 2020 – Govt source
By Gerry Davies || November 23, 2012 at 07:09 GMT
Reuters reporting.
Today’s orderboard
Written by Pete Jackson
November 23, 2012 at 07:30 GMT
EUR/USD: Bids 1.2850/60, sell stops through 1.2840 ahead of more bids 1.2800/10 (200 day MA 1.2803) sell stops below ahead of more bids 1.2770/80. Offers 1.2900/10, (1.2901- 50% of Oct17- Nov 13 fall, barrier 1.2900) buy stops through 1.2915. Offers again 1.2940/60 (suggested barrier 1.2950, 61.8% fibo 1.2958)
GBP/USD: Bids 1.5920/30, 1.5880/90 and bids/ tech 1.5850/60 (200 day MA at 1.5856), Offers 1.5965/75 larger up at 1.5990/00 (talk of 1.6000 barrier, kijun line 1.6002), buy stops above.
EUR/GBP: Strong offers 0.8080/8100, buy stops above ahead of large er offers 0.8145/60 with likely large buy stops above 0.8165. Bids /tech supp/options at 0.8065/75 (200 day MA 0.8073 now supportive), more bids 0.8040/50 and 0.8000/10, sell stops below.
USD/JPY: Bids 82.00/20, sell stops just below ahead of more bids 81.65/75. Offers 82.50/60 and 82.80/00 from exporters / option protection (83.00 barrier) large buy stops just above.
EUR/JPY: Offers 106.15/25, possible buy stops above, ahead of tech res offers 106.45/55 (May 2 high 106.55), tech res 106.74 (100 day MA, daily cloud top) and more offers 106.90/00 (107 barrier?). Bids 105.75/85, sell stops below ahead of bids 105.50/60 and 105.00/10
AUD/JPY: Bids 85.40/60, possible sell stops through 85.35 (85.36 Asian low) and tech supp 85.10/20 sell stops below through 85.00. Offers 85.90/00, buys tops above ahead of tech res 86.40/.50 (Apr 2 high 86.50)
AUD/USD: Tech supp/bids 1.0370/80 (100 day MA 1.0375), 1.0340/50 real money sovereigns, 9cloud base 1.0340) sell stops below ahead of larger support 1.0320 down to 1.0300 (200 day MA 1.0313). Buy stops through 1.0425 (Nov 20 high) ahead of stronger offers 1.0450/60, buy stops through 1.0460.
EUR/AUD: Bids 1.2360/70 and 1.2290/10 (tenkan line 1.2290), Offers 1.2390/10 buy stops through 1.2415 ( kijun line 1.2412, 200 day MA at 1.2413, 31.8% fibo of Oct-Nov fall around 1.2415) ahead of offers 1.2490/00 (50% fibo of same fall around 1.2492)
NZD/USD: Bids 0.8125/40 (daily cloud base 0.8136, 100 day MA 0.8132), sell stops through 0.8120 ahead of bids 0.8100/10 with sell stops below. Strong offers 0.8180/00 (kijun line 0.8181, cloud top 0.8203, 55 day MA 0.8205) large buy stops through 0.8210.