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24 July 2017 - FCA secures £350,000 and jails insider dealer
Schroders
Source - https://www.fca.org.uk/news/press-releases/former-equities-trader-schroders-investment-management-sentenced-insider-dealing
Where - United Kingdom
Cost - 350,000 GBP
Business line - Trading and Sales

The UK’s Financial Conduct Authority has announced that Damian Clarke, a former equities trader at Schroders Investment Management, has been sentenced to two years imprisonment having pleaded guilty to nine counts of insider dealing.

Between August 2000 and January 2013, Clarke was employed initially as an assistant fund manager, and from 2006, as an equities trader. In these roles, Clarke received inside information about significant corporate events, mainly anticipated public announcements of mergers and acquisitions.

He used this information to place trades using accounts in his own name and that of close family members for which he had been provided with account numbers and passwords. The offences were committed over a nine-year period between October 2003 and November 2012. The total profits made from Clarke’s insider dealing amount to at least £155,161.98, according to the FCA.

In sentencing Clarke, Judge Korner QC, said “it was no exaggeration when prosecution counsel said in opening that these offences were pre-meditated, deliberate, and dishonest.”

Mark Steward, the FCA’s director of enforcement and market oversight, said: “This is yet another case involving a city professional caught and jailed for abusing the market that employs him. Insider dealing is increasingly detectable these days and, where detected, more likely to lead to terms of imprisonment and shame rather than glamorous profits and fame.”

The court has also made a confiscation order in the sum of £350,000 against Clarke which must be paid within three months or he will face a further three years in prison.