View more on these topics

Eight year jail sentence for insider dealing pair

Jail banker

Two crooks have been hit with jail sentences after being convicted of insider dealing this week.

Investment banker Martyn Dodgson and chartered accountant Andrew Hind were convicted on Monday, and have now been handed 4.5 years and 3.5 years, respectively.

Dodgson’s sentence is the longest ever handed down for insider dealing in a case brought by the FCA.

Confiscation proceedings will also be pursued for both.

It marks the conclusion of the FCA’s largest ever investigation into insider dealing, and saw the regulator partner with the National Crime Agency under the banner of Operation Tabernula.

Tabernula has so far seen the authorities secure five convictions, including those of Dodgson and Hind.

The FCA and its predecessor, the FSA, has now secured 30 convictions for insider dealing.

Sentencing Dodgson and Hind, His Honour Judge Pegden, described their offending as “persistent, prolonged, deliberate, dishonest behaviour.”

FCA director of enforcement and market oversight Mark Steward said: “This case involved serious offending over a number of years, conducted in a sophisticated way using deliberate techniques to avoid detection. Dodgson was an approved person who was entrusted by his employer with sensitive and valuable information. He betrayed that trust by exploiting the information for his own benefit, conspiring with Hind to deceive the market

“Insider dealing is ever more detectable and provable. And this case shows lengthy terms of imprisonment, not profits are the real result.”

Between December 2006 and March 2010, personal friends Dodgson and Hind used inside information sourced from Dodgson to effect secret dealing for their own benefit.

To prove the conspiracy, the FCA – working with the NCA – relied on five acts of insider dealing at five companies: Scottish & Newcastle in October 2007, Paragon Group of Companies in July 2008, Just Retirement in October 2008, Legal & general in February 2009, and BSkyB in March 2010.

The investigation uncovered elaborate strategies used by Dodgson and Hind to cover up their activities. These included using unregistered mobile phones, encoded and encrypted records, safety deposit boxes and the transfer of benefit using cash and payments in kind.

Recommended

Handcuffs-700x450.jpg
1

Two convicted in largest-ever FCA insider dealing investigation

A former investment banker and a chartered accountant have been convicted of insider dealing in the largest-ever investigation of its kind undertaken by the FCA. The regulator relied on evidence including trades involving pension firms Just Retirement and Legal & General. Martyn Dodgson, 44, formerly of Lehman Brothers, Morgan Stanley and Deutsche Bank, and Andrew […]

FCA logo new 3 620x430

Ex-Schroders trader pleads guilty to insider dealing

Ex-Schroders trader Damian Clarke has pleaded guilty to nine counts of insider trading. Clarke, who will be sentenced on 13 June, had already pleaded guilty to seven counts of insider dealing on July 2015. Appearing at Southwark Crown Court today, admitted guilt over the remaining two counts. The charges, made between 2003 and 2012, relate to […]

Global income: preparing for a rate rise…

In the five years since we launched the Artemis Global Income Fund, its manager Jacob de Tusch-Lec has built a distinctive portfolio that is first among its peers. Here he explains why his “quality, cyclical and value yield” stocks, and flexible approach, leave the fund better placed to benefit from uncertainty than funds that depend […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

There are 3 comments at the moment, we would love to hear your opinion too.

  1. Andrew Horlock 12th May 2016 at 4:21 pm

    I suppose 8 years sounds better as a headline than 3.5 years and 4.5 years?

  2. Thanks for the pair of handcuffs for those of us who missed the point.

  3. Charles Evans 13th May 2016 at 9:00 am

    More sacrificial lambs.

Leave a comment