Financial Conduct Authority
FCA secures £350,000 confiscation order against convicted insider dealer
Yesterday, Her Honour Judge Korner CMG QC sitting at Southwark Crown Court made a confiscation order in the sum of £350,000 against Damian Clarke, a convicted insider dealer. The order must be paid within 3 months or Mr Clarke will face a further 3 years in prison.
Mark Steward, the FCA’s Executive Director of Enforcement and Market Oversight said:
“Mr Clarke engaged in a systematic and long-running criminal enterprise in order to make significant illegal gains for himself and his family. As a result, he has lost his liberty, his livelihood and his reputation and must now pay a substantial confiscation order. The message should now be clear that insider dealers are increasingly likely to be caught and will be made to fully account for their misconduct."
Mr Clarke pleaded guilty to nine counts of insider dealing, contrary to section 52 of the Criminal Justice Act 1993 and was sentenced to a total of 2 years’ imprisonment on 13 June 2016.
Between August 2000 and January 2013, Mr Clarke was employed by Schroders Investment Management initially as an assistant fund manager and, from 2006, as an equities trader. In these roles, Mr 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 those of close family members, in respect of which he had been provided with the account numbers and passwords. The offences were committed over a 9 year period between October 2003 and November 2012.
The total amount to be confiscated from Mr Clarke exceeds the profits generated from the nine counts of insider dealing he pleaded guilty to. As a result of the extent of his offending, he is deemed to have a criminal lifestyle, which enables the Court to assume that the profits made from other non-indicted trading within a defined period also represent the proceeds of crime.
In total, the Defendant derived a benefit of £719,658.69 from his criminal conduct. It was agreed that the value of Mr Clarke’s interest in various assets amounted to £350,000 and therefore, a confiscation order was made in that sum.
Notes to editors
The confiscation order was made on Monday 24 July 2017.
- We previously published details of the Defendant’s conviction and sentence.
- The 'sentence in default' is the term of imprisonment to be imposed if a defendant does not satisfy his confiscation order. In the event that a sentence in default is served, a defendant is still required to satisfy the debt, as well as any interest that has accrued.
- The FCA obtained a restraint order against Mr Clarke on 14 January 2013 in order to preserve the value of assets in which he had an interest pending the outcome of the FCA’s investigation and the conclusion of the prosecution and confiscation proceedings that followed.
- On 1 April 2013, the FCA became responsible for the conduct supervision of all regulated financial firms and the prudential supervision of those not supervised by the Prudential Regulation Authority (PRA).
- The FCA has an overarching strategic objective of ensuring the relevant markets function well. To support this it has three operational objectives: to secure an appropriate degree of protection for consumers; to protect and enhance the integrity of the UK financial system; and to promote effective competition in the interests of consumers.
- Find out more information about the FCA.
Latest News from
Financial Conduct Authority
Upper Tribunal upholds the Financial Conduct Authority’s decision to fine and ban Charles Palmer former CEO of adviser network10/08/2017 11:10:00
On 8 August 2017, the Upper Tribunal upheld the Financial Conduct Authority’s (FCA) decision to ban Charles Palmer, former CEO of Financial Limited and Investments Limited (“the Firms”), from performing FCA significant influence functions.
The FCA and the FCA Practitioner Panel publish the findings from their joint survey of industry views04/08/2017 10:25:00
The Financial Conduct Authority (FCA) and the FCA Practitioner Panel yesterday published the findings from their 2017 survey of FCA-regulated firms.
Financial Conduct Authority sets out agenda and priorities for consumer credit01/08/2017 09:10:00
The Financial Conduct Authority (FCA) yesterday published the outcome of its review into high-cost credit, which includes its assessment of the effectiveness of the payday loan price cap.
Lloyds Banking Group sets up redress scheme for mortgage arrears customers28/07/2017 09:10:00
Lloyds Banking Group (Lloyds) has agreed to set up a redress scheme for mortgage customers who incurred fees after they fell behind with their mortgage payments.