Two plead guilty to insider dealing

In a case brought by the Financial Conduct Authority (FCA) Manjeet Mohal and Reshim Birk have today pleaded guilty to three counts of insider dealing on day three of their trial at the Central Criminal Court. They will be sentenced on 13 January 2017.

During Mr Mohal’s employment at Logica Plc (Logica) he came into possession of inside information regarding the proposed takeover of Logica by CGI Holdings (Europe) Ltd (CGI). He had worked for Logica for many years in the Finance Team and was a trusted member of the management reporting team at the heart of the company.  During May 2012 while takeover negotiations between CGI and Logica were taking place, Mr Mohal came into possession of inside information about that takeover. Today he pleaded guilty to two counts of the illegal disclosure of that inside information.

Mr Birk, who was a neighbour of Mr Mohal, pleaded guilty to one count of insider dealing. He admitted that he used the inside information to inform his purchase of shares and options in Logica two days before a public announcement was made regarding the takeover. He made in excess of £100,000 profit as a result of that insider trading.

No evidence was offered against a third defendant, Surinder Sappal.

Mark Steward, executive director of enforcement and market oversight at the FCA commented:

“We are determined to do whatever is required to curb insider dealing and other market abuse to protect both the investing public and market integrity and we will continue to prosecute cases and hold wrongdoers accountable where there is sufficient cause.”

Ryan Wilmott, a former senior manager at Logica, was previously sentenced to 10 months imprisonment in relation to two counts of insider dealing and Kenneth Carver was fined £35,212 for dealing in Logica shares on the basis of inside information.  All of these outcomes resulted from the same investigation.

Notes to editors

  1. Manjeet Mohal date of birth: 03 April 1957 and Reshim Birk date of birth: 18 November 1961
  2. The FCA, and previously the Financial Services Authority, has secured 32 convictions in relation to insider dealing.
  3. The Financial Services and Markets Act 2000 gives the FCA powers to investigate and prosecute insider dealing, defined by The Criminal Justice Act 1993.
  4. Individuals with information about market abuse can call the FCA’s market abuse hotline on 020 7066 4900.
  5. On 1 April 2013, the 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).
  6. 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.
  7. Find out more information about the FCA.