Financial Conduct Authority
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Two sentenced in insider dealing case

In a prosecution brought by the Financial Conduct Authority (FCA) Manjeet Mohal, a former employee of Logica Plc, has recently been sentenced to 10 months imprisonment suspended for two years in respect of two counts of insider dealing. He was also ordered to undertake 180 hours of community work. Reshim Birk, a neighbour of Mr Mohal’s was sentenced to 16 months imprisonment suspended for two years in respect of one count of insider dealing. He was ordered to undertake 200 hours of community work.

A confiscation order of £162,876.69 was made against Reshim Birk. Prosecution costs of £42,593.35 were awarded to the FCA in respect of each defendant.

During his employment at Logica Plc Mr Mohal came into possession of inside information relating to a takeover of Logica by CGI Holdings (Europe) Ltd which he disclosed to his neighbour, Reshim Birk, and another individual. Reshim Birk then traded in shares and options relating to Logica Plc while in possession of that inside information and made profits in excess of £100,000.

In sentencing HHJ Cooke QC remarked: "But for the diligence of those investigating, he [Birk] may have got away with it". 

Mark Steward, Executive Director of Enforcement and Market Oversight, said: “Mr Mohal was a trusted employee and he abused that position. This is another clear example for those who are tempted to insider deal, that they are more likely to be caught than ever before”

Notes to editors

  1. 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).
  2. 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.
  3. Find out more information about the FCA.

 

Channel website: https://www.fca.org.uk/

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