A senior manager of a waste industry firm has been found guilty on five counts of insider dealing and four counts of money laundering after trading on knowledge obtained through his senior role and laundering the proceeds.
Former PM Onboard senior manager Neil Rollins was found guilty today at Southwark Crown Court in a case brought by the FSA.
In August and September 2006 Rollins sold his entire shareholding in PM Group raising £173,500.
When information about the company’s worsening financial position was announced to the market the share price fell immediately by 17 per cent. By selling his shares when he did Rollins avoided substantial losses of approximately £45,000.
Rollins also encouraged his wife Louisa Rollins to do the same with her entire shareholding.
When he learned of the FSA’s interest in his dealing he laundered the proceeds to try and hide his behaviour by transferring the proceeds into accounts set up in his father’s name, David Rollins.
A sentencing and confiscation hearing will take place on January 21, 2011.
FSA managing director of enforcement and financial crime Margaret Cole says: “This is another milestone in our fight against market abuse.
“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. Rollins’ crime was aggravated by the fact that he sought to hide his conduct from the FSA by laundering the proceeds.”
The Rollins case is the fifth successful prosecution brought by the FSA.