Two individuals convicted of insider dealing have been ordered to pay a total of £1.5m out of proceeds obtained through insider dealing.
Confiscation orders totalling £1,534,000 were made today against Christian Littlewood and Angie Littlewood who were each ordered to pay £767,000, representing the benefit obtained by each of them from insider dealing.
The case was brought by the FSA and heard at Southwark Crown Court.
The order will be paid out of funds and assets frozen by the court after an application by the FSA at the time of the Littlewoods’ arrest. The Littlewoods and a third defendant, Helmy Omar Sa’aid, were convicted of insider dealing in eight stocks making a total profit of £590,000. The total amount confiscated in this case, including the previous order of £640,000 against Sa’aid totals £2,174,000.
Former senior investment banker Christian Littlewood, his wife Angie and family friend Sa’aid pleaded guilty on 8 October, 2010 to eight counts of insider dealing related to trading in a number of different London Stock Exchange and AIM listed shares between 2000 and 2008.
Christian Littlewood was sentenced to three years and four months in custody. Angie Littlewood was sentenced to a year in custody suspended for two years, while Sa’aid was sentenced to two years in custody.
Christian and Angie Littlewood have also been banned by the FSA from working in the financial services industry.
If the sums are not paid within six months, the Littlewoods will be liable to serve an extra three years in prison.
FSA director of enforcement and financial crime Tracey McDermott says: “A key part of our strategy is to ensure those who are convicted of insider dealing do not keep their ill-gotten gains.
“As a result of their actions the Littlewoods have not only received custodial sentences and seen their reputations and future careers destroyed, they have also paid a sum in confiscation significantly greater than the profit from the indicted trading alone. The orders made today, coupled with the sentences previously imposed, should make it clear that insider dealing does not pay.”
Equity Partners UK managing director Kevin Tooze says: “There has got to be a strong deterrent for these kinds of cases. It is right that the level of penalty has been set at more than just the profit earned.”