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Six arrested in insider dealing probe

Six men have been arrested in a joint FSA and Serious Organised Crime Agency investigation into insider dealing.

In the first operation carried out jointly between the FSA and the Soca, 16 addresses have been searched this morning in London, the South East and Oxfordshire in the FSA’s largest ever operation against insider dealing.

The BBC reports that London-based hedge fund, Moore Capital, was one of the firms raided in the investigation and that one arrest was made there.

Documents and computers have been seized from residential and business premises.

Six men including two senior city professionals at leading institutions and one professional at a hedge fund have been arrested on suspicion of being involved in a sophisticated and long-running insider dealing ring.

It is believed that the city professionals passed inside information to traders (either directly or via middlemen) who traded based on this information and have made significant profits as a result.

The operation was carried out by 143 FSA personnel together with officers from Soca as part of a joint investigation that commenced in late 2007.

No further details can be confirmed at this time.


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There are 8 comments at the moment, we would love to hear your opinion too.

  1. about time that the FSA is do its job !!! how many more is the question

  2. Well done. Such matters are, I suggest, rather more serious and thus warrant considerably more regulatory resources than the relatively small number of relatively small scale IFA transgressions.

    Still, though, we read of very little being done about what the banks get up to day in, day out. But we watch and we wait in hope if not expectation.

  3. The FSA should concerntrate more on the Banks and Investment Institututions and leave Mortgage Brokers and IFA’s alone who generally do a good honest job for their clients.

  4. I am not overly annoyed with the FSA’s current legislation towards brokers. I think banks will be wakening up to the shortfalls they have and I just hope that if my fees are paying for a three year investigation and 147 well paid memebers of staff to nab 6 people there are serious punishments to be had. I hope high court judges start taking financial crime seriously and start issuing criminal sentences to deter. The judgements handed out in previous cases of financial crime have been a joke – if we behave appropriately we do not worry, time more affluent criminals started to heat under their criminal collars, whatever the colour.

  5. I think the FSA are now in a position where they cannot win, do something good we moan that they should have been doing more and more often, do something bad and torrents of abuse. Has this industry gone so far where we cannot see there is good work going on out there. Celebrate it, don’t werstle the life out of it like a greco roman wrestler

  6. I hear a lot of what the banks get up to but I do not know what terrible practices are. Could someone clarify?? I know they have clients accounts being ripped off all the time but that is ultimately down to individuals, crucify them. You cannot legislate for everything. If there is truly universal bad practice what is it? why has it not been dealt with? and what can be done? Bank bashing is not a practice I thought I would ever come to witness, its all rather surreal.

  7. I hope they all get long sentences when convicted.

    Insider dealing happens all the time in the city – thats how they predict the share prices correctly – and make millions – and the FSA probably spent more on the investigation than recovered funds.

    I hope some big fund manager names get published soon.

  8. Incompetent Regulators Award Team 24th March 2010 at 9:02 am

    Laughable and Annoying at the same time. Why do IFAs and the like fund 150 useless staff at the FSA for investigating cases such as this? This is police work and not for pretend failed regulators. This is more abuse to take money directly from the private sector profits to pay for special police work. A total disgrace as this is small fry when compared with Banking collapse.

    Alsa the SOCA are just as useless as 3 years ago they had over 300 cases to deal with and were actually only working on 7. And when I placed my own report in which involved many millions, I was ignored. This is what you get under New Labour!

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