A former managing director at Deutsche Bank and a former finance director at Top Shop have both been handed long prison sentences for “persistent, prolonged, deliberate, dishonest behaviour” over making deals on stock markets using classified information.
Martyn Dodgson, 44, previously with Deutsche Bank was given four-and-a-half years for his part in a scam which prosecutors said made a total of £7.4m between 2006 and 2010.
Andrew Hind, 56, received three-and-a-half years by a London crown court after a three-month trial.
The court found both guilty of conspiracy to insider trade.
The Financial Conduct Authority alleged that Dodgson had found inside information through his work and then passed it to Hind, who was then alleged to have given it to two other men to trade on their behalf. It was alleged that the group then split the profits.
Graeme Shelley, Paul Milsom and Julian Rifat had already pleaded guilty earlier. Traders Milsom and Rifat were given prison sentences and a £100,000 fine, while Shelley received a two-year suspended sentence.
Three others were acquitted.
Dodgson is one of the most senior City figures to be charged with insider trading and received the longest prison sentence for the crime ever handed out in the UK. The maximum penalty is seven years and until this case no sentence exceeded four years.
“Dodgson and Hind tried to prevent us from uncovering their insider dealing by using unregistered mobile phones, encoded and encrypted records, and transferring benefit using cash and payments in kind,” according to Oliver Higgins at the National Crime Agency.
“Insider dealing is ever more detectable and provable. And this case shows lengthy terms of imprisonment, not profits, are the real result,” said Mark Steward of the FCA.
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