In a case brought by the Financial Conduct Authority (FCA) Julian Rifat a former senior execution trader at Moore Capital Management LLC has today pleaded guilty to an indictment reflecting 8 instances of insider dealing. Profits from the dealing exceeded £250,000. Rifat is the third individual to plead guilty to insider dealing offences arising out of Operation Tabernula, the FCA’s largest and most complex insider dealing investigation. He will be sentenced in the New Year.
Rifat admitted passing inside information, obtained during the course of his employment, to an associate, Graeme Shelley, who then traded for their joint benefit. Earlier this year Graeme Shelley, previously a broker at Novum Securities, pleaded guilty to insider dealing with Rifat and with another associate Paul Milsom. Paul Milsom, an execution trader at Legal and General Insurance Management Ltd, pleaded guilty to insider dealing and was sentenced in 2013.
Tracey McDermott, the FCA’s director of enforcement and financial crime said:
'Insider dealing investigations are complex and long-running. Nevertheless we are committed to undertaking the painstaking analytical work which is required to bring these cases to court. In this case measures were taken by those involved to conceal their activities – this included communicating via unregistered Pay As You Go mobile telephones and the diversion of trading profits to third parties. The guilty plea today is a reflection of our capability and determination to tackle these challenging and complex cases.'
Notes to editors
- The FCA, and previously the Financial Services Authority, have secured 24 convictions in relation to insider dealing: Christopher McQuoid and James William Melbourne in March 2009; Matthew and Neel Uberoi in November 2009, Malcolm Calvert on 11 March 2010, Anjam Ahmad on 22 June 2010, Neil Rollins on 21 January 2011, Christian Littlewood and Angie Littlewood on 8 October 2010 and Helmy Omar Sa'aid on 10 January 2011, Rupinder Sidhu on 15 December, and James and Miranda Sanders together with James Swallow in May 2012 and Ali Mustafa, Pardip Saini, Paresh Shah, Neten Shah, Bijal Shah and Truptesh Patel on 27 July 2012, Thomas Ammann on the 13 December 2012, Paul Milsom on 7 March 2013, Richard Joseph on the 11 March 2013 and Graeme Shelley on 27 March 2014.
- The FCA is currently prosecuting eight other individuals for insider dealing:
Martyn Dodgson 11 January 2016 Andrew Hind 11 January 2016 Benjamin Anderson 11 January 2016 Iraj Parvizi 11 January 2016 Richard Baldwin 11 January 2016 Grant Harrison 11 January 2016 Paul Coyle Trial date to be confirmed Damian Clarke Trial date to be confirmed
- The Financial Services and Markets Act 2000 gives the FCA powers to investigate and prosecute insider dealing, defined by The Criminal Justice Act 1993.
- Individuals with information about market abuse can call the FCA’s market abuse hotline on 020 7066 4900.
- 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).
- 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.
- Find out more information about the FCA.