Insider-dealing ring at UBS and JP Morgan facing jail
Six men were facing jail terms yesterday after being found guilty by a jury of insider dealing in a ring where employees in the print rooms at UBS and JP Morgan passed on secret takeover deal documents to their trader friends.
Brothers Ersin and Ali Mustafa passed on confidential and price-sensitive information from their printing work, downloading confidential information onto memory sticks for friends who used the information to make spread bets on share prices of the companies involved.
The men made their bets knowing the share prices would rise when the stolen information was made public.
The four-and-a half-month trialwas the longest and most complex prosecution brought by the Financial Services Authority (FSA), involving evidence from hundreds of trading accounts and telephone records.
The men were convicted of making a profit of £732,044 over a two-year period from May 2006. The FSA had prepared further charges but the judge ruled they should not be heard for trial-management reasons – effectively to save the public money on an even longer hearing.
Most of the men's trading was done through the City Index spread-betting house, often in the names of friends and family in the hope of disguising the suspicious activity.
During the trial, Ali, who worked at UBS, described his older brother, Ersin, as "a wheeler dealer … always looking for the extra buck".
Ersin, who was at JP Morgan, is currently believed to be in North Cyprus, where the brothers have family.
Ali originally tried to blame other colleagues in the UBS print room but analysis of his computer proved he was definitely the culprit.
Tracey McDermott, the acting director of enforcement and financial crime at the FSA, said: "The defendants were involved in a long-running, sophisticated and very profitable scheme. Indeed, several of them derived the majority of their income from it... This sort of behaviour poses a significant risk to the integrity of markets and cheats honest investors."
Ali faces up to seven years in jail when he is sentenced this Friday.
The other men involved, who are also potentially facing seven-year jail sentences, were Pardip Saini, former investment adviser Paresh Shah, Neten Shah, Bijal Shah and Truptesh Patel.
A seventh man, Mitesh Shah, who worked for the Worldspreads spread-betting firm, was acquitted.
International Women's Day 2014: The shocking statistics that show why it is still so important
Feminist quotes to inspire you on the International Women's Day
Belle Knox: How the porn star student from Duke University became bigger than Justin Bieber
International Women's Day 2014: Mothers and daughters describe their hopes and dreams in touching photographs
Liam Neeson on death of wife Natasha Richardson: ‘When I hear the door opening, I still think I’m going to hear her’
Apple's Tim Cook: Business isn’t just about making profit
Thousands of young people forced to go without food after benefits wrongly stopped under 'draconian' new sanctions regime
Ukraine crisis: New navy chief 'defects' and surrenders Crimean HQ as Putin claims ultranationalists forced intervention
Britain's top vet sparks controversy with call for ban on slashing animals' throats in 'ritual' slaughters for halal and kosher meat products
Ukraine crisis: Russia dismisses '3am ultimatum' as 'total nonsense'
If you're horrified by a flame-roasted dog, you should be shocked at a hog roast
- 1 Saudi preacher who 'raped and tortured' his five -year-old daughter to death is released after paying 'blood money'
- 2 Too upsetting? Academy members voted for Oscar-winning 12 Years A Slave 'without watching it'
- 3 Orgasm machine to deliver climax at the push of a button
- 4 Liam Neeson turned down James Bond role to marry Natasha Richardson
- 5 Livr: A social network only for drunk people
iJobs Money & Business
£12000 per annum: Inspiring Interns: The company works with Tier 1 FTSE 100 Ba...
£32000 - £36000 per annum + generous benefits: Pro-Recruitment Group: * TAX * ...
£37000 - £40000 per annum + £20000 benefits package: Pro-Recruitment Group: **...
£30000 - £35000 per annum + generous benefits: Pro-Recruitment Group: Mixed Ta...