FCA v former iSOFT directors

The Financial Conduct Authority (FCA) has today announced that it has decided not to pursue a second retrial in the case against Stephen Graham, Timothy Whiston and John Whelan (formerly of ISoft plc) at Southwark Crown Court. The FCA will also not be pursuing the prosecution of Patrick Cryne (former chairman of Isoft plc).

The jury was discharged by the Judge following legal argument about an exhibit handling issue that arose late in the trial.  The Judge ruled that the issue did not, in itself, prevent the case proceeding to the jury.  However, procedural issues involving the cross examination of counsel for the prosecution meant it was not possible to resolve the matter in this trial.

The FCA, after much careful consideration of the options available, decided that it would not be in the public interest for a second retrial to be pursued.    

Tracey McDermott, director of enforcement and financial crime said:

“This is of course a disappointing outcome.  The problems that have arisen in this case result from a particularly unusual set of circumstances, which are unlikely to recur.  As with all our cases, win or lose, we will look to see what lessons can be learned for the future.   In the meantime, we continue to focus our energy on the strong pipeline of cases we have under investigation.”  

Martin Wheatley, chief executive said:

“This decision not to seek a second retrial does not undermine our determination to bring and prosecute difficult cases.  The FCA will continue to use our enforcement powers as one of the ways that we bring about a change in the culture of firms that operate in the UK markets.  We have to make sure markets work well, and that firms operating within them put the interests of their customers’ and investors – and not self-interest – first.”  

Notes to Editors

  1. On the 1 April 2013 the Financial Conduct Authority (FCA) became responsible for the conduct supervision of all regulated financial firms and the prudential supervision of those not supervised by the Prudential Regulation Authority (PRA).
  2. The FCA has an overarching strategic objective of ensuring the relevant markets function well. To support this it has three operational objectives: to secure an appropriate degree of protection for consumers; to protect and enhance the integrity of the UK financial system; and to promote effective competition in the interests of consumers.
  3. Find out more information about the FCA, as well as how it is different to the PRA.