On Monday Martyn Dodgson, an ex Deutsche Bank managing director and Andrew Hind, a former finance director at Topshop were found guilty of insider trading by a London jury.
As part of the case, three other men were found not guilty including Iraj Parvizi who was once believed to have infiltrated the Bank of England.
Dodgson, whose previous employers include Morgan Stanley, Lehman Brothers and Deutsche Bank was a close personal friend of Hind, a businessman and property developer, the two agreed to use Dodgson’s insider information to deal secretly.
Dodgson used information which came from within investment banks which he worked at to give to Hind who was a “middle man” to ensure the deals were carried out. The men used complex strategies to avoid detection from authorities such as unregistered mobile phones, military grade encryption and safety deposit boxes to make payments. The FCA used five executed insider trades to prove the conspiracy.
The men acquitted include Andrew “Grant” Harrison, 46, whose corporate broking career included companies Panmure Gordon and Lloyds Banking Group; Ben Anderson, 71, a day trader who traded out of Belgravia; and his ex business partner, Iraj Parvizi, 50, who amassed a net worth of £70m prior to working in a Kent kebab shop.
It was alleged by the FCA that Dodgson and Mr Harrison gave insider information to Hind, who asked Mr Parvizi and Mr Anderson make the trades on their behalf. On completion the men would split their profits, the FCA alleged that the profits amounted to £7.4m.
Dodgson and Hind were convicted by a 10-2 majority whilst they were told they would be sentenced at a later date.
Insider trading in the UK carries a maximum seven-year sentence although historically the most a person has been jailed for is four years.