FSA fines father and son £180,000 for market abuse
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The FSA has today fined Jeremy Burley £144,200 and his father Jeffery Burley £35,000 for engaging in market abuse in relation to the shares of oil and gas exploration company Tower Resources in June 2009.
Jeremy Burley’s penalty included disgorgement of the £21,700 financial benefit he made through the market abuse.
Jeremy Burley was managing director of BMS Minerals, a Ugandan company which provided vehicles and equipment to oil and gas exploration companies in Uganda, including Tower Resources.
Jeremy Burley is a Ugandan resident and British citizen.
His father, Jeffery Burley, is a retired forestry expert and UK resident. Jeffery Burley opened and managed a share trading account in the UK. The FSA says he used this account to trade shares on behalf of his son.
Through his employment with BMS Minerals, around June 11, 2009 Jeremy Burley acquired inside information in relation to Tower Resources’ first oil well in Uganda.
The information indicated that the drilling looked unlikely to produce oil and that the exploration of a second well was unlikely to proceed.
Before Tower Resources announced the news on June 15, 2009, Jeremy Burley passed the inside information onto his father and another person and instructed his father to sell his entire holding of 790,000 shares in Tower Resources.
Jeremy Burley also advised his father to sell the shares in multiple lots so as to try and avoid the attention of the regulator.
Jeffery Burley then sold the 790,000 shares in Tower Resources immediately and in so doing avoided a loss of £21,700.
The FSA says the size of Jeremy Burley’s fine reflects his lack of co-operation with the FSA during the course of the investigation.
Jeremy Burley and Jeffery Burley both agreed to settle the case at an early stage and therefore qualified for a 30 per cent discount under the FSA’s executive settlement procedures.
Had the fines not been discounted, Jeremy Burley would have been fined £175,000 in addition to the disgorgement of £21,700 and Jeffery Burley would have been fined £50,000.
FSA director of enforcement and financial crime Margaret Cole says: “The FSA views the conduct of Jeremy and Jeffery Burley as particularly serious. Jeremy Burley acquired inside information through the course of his employment in Uganda, passed that information to others and used it for his own personal benefit. The actions of father and son were deliberate and premeditated and they took steps to disguise their insider dealing.
“The penalties imposed on Jeremy and Jeffery Burley in this case send a clear message to individuals that regardless of where they are based and whether they work in the regulated sector, the FSA will not tolerate people making a personal gain by trading on the basis of inside information.
“Extraction of natural resources often involves many independent contractors. This case should serve as a reminder to those in that industry that abuse of inside information – however obtained – will not pay.”
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Readers' comments (2)
M J Winfield | 19 Jul 2010 11:31 am
Yet another diminutive success at the hand of Ms Cole, but then the FSA is desperate for any opportunity to succeed.
Therefore when is the FSA going to take on Bank abuse. Or is it simply Small Fry do not offer career prospects.
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RW | 19 Jul 2010 12:13 pm
I applaud the FSA concerning their actions in this case. The underlying reason seems to be protecting jobs and thats why the Banks always get away with it and the independant broker (who has trouble affording staff now) is slowly disappearing!!
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