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Father and son sent to prison for insider dealing

Former corporate broker intern Matthew Uberoi and his father Neel Uberoi were today sentenced to 12 and 24 months in prison respectively for insider dealing.

The court adjourned the case until December 14 to consider the appropriate level of confiscation and costs.

Matthew Uberoi was an intern at a corporate broking firm during the summer of 2006 and worked on takeovers and other price sensitive deals.

The FSA says on several occasions he passed inside information to his father in relation to three separate announcements.

The emails used a code relating to Chinese food. His father then purchased shares in those companies and made £110,000 profit.

The judge certified that the benefit obtained by Neel Uberoi from his insider dealing was the full worth of the shares purchased, which totalled £288,050.

The pair were found guilty of twelve counts of insider dealing after making £110,000 profit on November 4, 2009 at Southwark Crown Court in the second insider dealing case brought by the FSA.

Passing sentence, His Honour Judge Testar said: “This offence is cheating and it is important for economic and social wellbeing to have clean markets. The public rightly recoils from the idea of people with inside information having a license to print money.”

FSA director of enforcement and financial crime Margaret Cole says: “The sentences Matthew Uberoi and his father are facing clearly demonstrate that insider dealing is a serious crime with serious consequences. Insiders are in a trusted position and abusing that trust undermines confidence in our markets. The FSA is determined to prevent that happening.

“This is our second successful criminal prosecution and there are more to come. Our recent successes reinforce the FSA’s credibility as a prosecutor. We are determined to do whatever is necessary to ensure that insider dealing is no longer seen as a way to make a quick profit but as a crime that does not pay.”

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Comments

There are 5 comments at the moment, we would love to hear your opinion too.

  1. of course crime pays.

  2. Excellent. Exactly what a Regulator should be doing.

  3. Yet again a criminal with a fine English sounding surname, I see.

  4. What they did was wrong, however is it just when violent crimes receive a less harsh sentence?

  5. £110,000 profit. 12 month sentence. £9k a month to sit in jail? Good deal?

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