Latest Financial News
[ 2010-06-04 ]
Insider dealing - Campaign against insider dealing goes on despite acquittals
London (UK) – 04 June 2010 – The Times - The Financial
Services Authority lost a criminal insider dealing
prosecution for the first time yesterday when an accountant
and two lawyers were cleared of exploiting confidential
Andrew King, the former finance director of NeuTec Pharma,
and Michael McFall and Andrew Rimmington, former partners in
US law firms, were acquitted of all charges by a jury after
less than 90 minutes of deliberations.
Mr King was acquitted of one count of insider dealing in the
shares of NeuTec, then an AIM-listed biotechnology company,
while Mr McFall was cleared of five counts and Mr Rimmington
of three counts in the same share.
The FSA alleged that in June 2006 Mr King, 45, leaked
details of NeuTec’s pending £240 million takeover by the
Swiss company Novartis to his friend and fellow Fulham
Football Club fan Mr McFall, 43. Mr McFall and his friend Mr
Rimmington, 40, were alleged to have shared an £80,000
profit trading before the deal. The jury heard that Mr King
made about £3 million profit from his NeuTec shares.
FSA secures first jail term for insider dealing
FSA seeks extradition of alleged insider dealer
The acquittals are the first blot on the FSA’s record in
criminal insider dealing prosecutions after the regulator
won its first three cases, securing five convictions, after
starting an aggressive crackdown in 2008.
Margaret Cole, the FSA’s head of enforcement, said that
criminal insider dealing cases were “challenging to prove”,
but she said: “Bringing criminal prosecutions sends a
message — loud and clear — that insider dealing is a serious
crime and we are not afraid to pursue cases through the
Monty Raphael, special counsel to the law firm Peters &
Peters, played down the acquittals, which he said “in no way
diminishes the FSA’s new, more muscular attitude to
That approach has seen four previous FSA insider dealing
defendants convicted and jailed. They include Malcolm
Calvert, a former Cazenove partner, jailed for 21 months,
and a dentist and his son, who had been a summer intern, who
were jailed for two years and for 12 months, respectively.
Mr McFall chose not to give evidence. Mr Rimmington was
excused during the trial after his brother was killed in an
attack. Yesterday Judge Peter Testar ordered a jury at
Southwark Crown Court to acquit Mr Rimmington after the FSA
said that it would not pursue its case against him in light
of the other two acquittals.
... go Back