Matthew Uberoi and his father, Neel Uberoi, were yesterday found guilty of 12 counts of insider dealing at Southwark Crown Court.
Neel Uberoi made about £110,000 profit based on inside information provided by Matthew Uberoi.
During the summer of 2006 Matthew Uberoi was an intern at a corporate broking firm working on takeovers and other price sensitive deals. He passed inside information to his father in relation to deals in three companies. His father then purchased shares in those companies and made substantial profits.
The insider dealing prosecution was the second brought by the FSA as part of its ongoing drive to promote efficient, orderly and fair markets, and tackle market abuse.
FSA director of enforcement and financial crime Margaret Cole says: “Insider dealing is not a victimless crime and we remain committed to stamping out this type of fraud by those trusted with inside information. Insider dealing damages the very confidence that underpins the integrity of our markets.
“By continuing to prosecute these crimes we believe we are achieving credible deterrence in this area, sending an emphatic message that insider dealing is a serious crime and will be treated as such.”
The sentencing and confiscation hearing will take place on December 10. In addition to this case, the FSA is currently prosecuting two other insider dealing criminal cases.