Three cleared of insider-dealing charges
Friday 04 June 2010
The record fine handed down to JP Morgan marked the latest stage in the FSA's attempts to crack down on the City, but the watchdog suffered a setback yesterday when two lawyers and a former finance director were acquitted of insider dealing charges that it had brought against them.
The lawyers, Michael McFall and Andrew Rimmington, had been accused by the regulator of making nearly £80,000 by using inside information allegedly provided by Andrew King, the finance director of NeuTec Pharma, to buy shares in the small Manchester biotech company shortly before its takeover in 2006.
However, Mr King and Mr McFall, a former mergers lawyer at McDermott Will & Emery, were cleared at Southwark Crown Court yesterday.
A judge told the jury to find Andrew Rimmington – whose case was halted last month after his brother was killed – not guilty following the verdicts on the other men. The case marked a reverse for the FSA after the successful conviction of Malcolm Calvert, a former Cazenove banker, for insider dealing in March.
The court had been told that NeuTec was subject to a £305m buyout by Novartis in June 2006 in which NeuTec's founders, Professor James Burnie and Professor Ruth Matthews, received about £21m for the business they set up at Manchester University in the late 1990s. It was alleged that the others profited from the deal through illegal methods.
Although the regulator has been running an aggressive campaign against those it believes have been trading in shares with knowledge that is not available to the market, convictions in such cases are hard to secure. The FSA is set to lose its powers over such inquiries and a new financial crime agency will assume the role of prosecutor.
Margaret Cole, the FSA's head of enforcement, said after yesterday's hearing: "Insider dealing cases are challenging to prove but these were serious charges and we considered that the evidence provided a proper basis to put the case before a jury for them to decide."
- 1 Autistic teenager beaten up by bullies makes them watch 20-minute video about autism
- 2 Greece debt crisis explained: A history of just how the country landed itself in such a mess
- 3 People all over the world are getting semicolon tattoos to draw attention to mental health
- 4 Greek debt crisis: Yanis Varoufakis's funniest (and most memorable) quotes
- 5 The biggest first date turnoff has been revealed
Greece debt crisis explained: A history of just how the country landed itself in such a mess
Swedish minister gives strongest case yet on why EU should stop turning away asylum seekers
Man dies instantly after shooting firework from top of his head
Isis schoolgirl Amira Abase who fled London to join terrorists in Syria mocks victims of Tunisia massacre
Father faces deportation to Thailand after 27 years in Britain for two 'stupid crimes'
More Britons believe that multiculturalism makes the country worse - not better, says poll
Osborne to cap family benefits at £23,000 – announced ahead of his post-election Budget
Nathan Collier: Montana man inspired by same-sex marriage ruling requests right to wed two wives
Greece crisis: IMF was pushed around by Angela Merkel and Nicholas Sarkozy – and now it is being humiliated
Forget little green men – aliens will look like humans, says Cambridge University evolution expert
Girl, 7, stares down hate preacher at Ohio festival with pro-LGBT rainbow flag gesture
iJobs Money & Business
competitive: SThree: Are you passionate about sales?Do you have a keen interes...
£17000 - £30000 per annum: Recruitment Genius: This is an exciting opportunity...
£15000 - £17000 per annum: Recruitment Genius: This company offers a range of ...
£15000 - £16000 per annum: Recruitment Genius: Customer Service Advisors are r...