A former research analyst provided privileged information to a friend who used this to carry out spread bets which generated profits of £85,541, the Financial Services and Markets Tribunal has found.
A former research analyst, Robin Chhabra, and his friend Sameer Patel were found to have committed market abuse using inside information.
Chhabra and Patel were both approved persons. During summer 2004, Chhabra was a research analyst at Evolution Securities Limited covering Ebookers and Eidos. Patel was an experienced spread better. On three occasions, Chhabra became aware of confidential information about forthcoming announcements relating to Ebookers and Eidos. Chhabra would call Patel on his mobile phone and shortly
afterwards Patel placed bets on the stocks.
FSA director of enforcement and financial crime Margaret Cole says: “By repeatedly giving Patel privileged information, Chhabra breached the trust of his clients and his employer. Patel exploited this information to try to make a quick profit at the expense of other investors.”