143 officers from the Financial Services Authority (FSA) together with some from the Serious Organised Crime Agency (SOCA) executed dawn raids on sixteen addresses in the London area yesterday in the UK's largest ever operation against insider dealing.
The operation was the culmination of a complex two year investigation into a sophisticated insider dealing ring.
The FSA investigation has led to the questioning of six men, who work for some of the biggest names in the City. BNP Paribas, Deutsche Bank and Moore Capital, a top hedge fund, have all been drawn in to the investigation by the alleged activities of employees.
It is thought that they were dealing on the own personal accounts, not on company business. But this will of course not be welcomed by the companies involved.
Four of those questionned, according to the Telegraph and Times, are: Clive Roberts, Exane's Head of European Trade Sales, 50% owned by BNP Paribas, Julian Rifat, a Moore Capital execution trader, Martyn Dodgson of Deutsche Bank and Graham Shelley of Novum Securities.
SOCA and FSA officers seized and removed computers and files from the suspects' home and office premises. The involvement of SOCA is a fresh development with FSA operations and may indicate a wider investigation is underway. This may possibly have international facets to it, with the Times saying it may involve 'a wealthy Iranian-born entrepreneur based in the Middle East who has extensive business interests in the UK'.
Under the Financial Services and Markets Act 2000 (FSMA 2000), the FSA has the power to investigate and prosecute those involved in insider dealing. This supports one of the FSAs four core objectives, that of fighting financial crime. The FSA gives out the following market abuse hotline telephone number – 020 7066 4900.
This is the fifth set of arrests that the FSA has made since 2008 involving insider dealers. They have so far resulted in five imprisonments, Christopher McQuoid, James Melbourne, Malcolm Calvert, Neel Uberoi and his son Matthew Uberoi. There are also three more cases being prosecuted.