The UK’s Financial Conduct Authority (FCA) has successfully prosecuted two individuals for insider trading and money laundering offenses that accumulated more than £1 million in illicit gains. The defendants, siblings, engaged in these illegal activities utilizing confidential information obtained from their professional roles and networks.
One of the individuals involved was a research analyst who had access to sensitive financial information regarding publicly traded companies. Between December 2019 and March 2021, this analyst conspired with their sibling to exploit proprietary market data to trade shares of at least 13 companies before significant market announcements were made.
The trades were conducted through various accounts, including those belonging to their sister and a personal trainer, as well as the analyst’s partner. These transactions involved using Contracts for Difference (CFDs). They positioned themselves for declines in the value of the shares and then liquidated these positions following the market announcements, thereby ensuring illegitimate profits.
Despite attempts to disguise their activities and maximize their financial gains, the FCA’s vigilant market monitoring systems intercepted the suspicious trading behavior. These systems are designed to track and analyze trading patterns rigorously.
In addition to insider trading, both individuals faced charges related to money laundering activities. Between January 2019 and March 2021, they received considerable cash from criminal enterprises, totaling approximately £198,210 through 176 cash deposits. This money had no relation to their insider trading violations.
Two additional associates involved in the scheme were acquitted of all charges lodged against them in connection with the case. As for the convicted siblings, they are scheduled to receive sentencing on July 4, 2025, at which time the FCA will also seek confiscation orders aimed at recovering the gains illegally obtained through their criminal activities.