Two men plead guilty to insider dealing on IT takeover

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Two men have pleaded guilty to three counts of insider dealing for leaking information about a company takeover.

Guilty pleas were entered by Manjeet Mohal and Reshim Birk yesterday during their trial at the Central Criminal Court, following a case brought by the FCA.

Mohal worked in the finance team at IT giant Logica, and in May 2012 came into possession of inside information during takeover negotiations with Canadian IT services firm CGI.

He told Birk, his neighbour, about the proposed takeover deal. Birk then used the information to buy shares and options in Logica two days before the CGI takeover was announced. He made over £100,000 as a result of the trade.

The pair will be sentenced on 13 January.

No evidence was offered against a third defendant, Surinder Sappal.

FCA executive director of enforcement and market oversight Mark Steward says: “We are determined to do whatever is required to curb insider dealing and other market abuse to protect both the investing public and market integrity and we will continue to prosecute cases and hold wrongdoers accountable where there is sufficient cause.”

As part of the same investigation, former Logica senior manager Ryan Wilmott was previously sentenced to 10 months in prison for insider dealing and Kenneth Carver was fined £35,212 for dealing in Logica shares on the basis of inside information.