Former UK partners of McDermott and Dorsey walk free as FSA insider trading case fails to convince jury

Former McDermott Will & Emery partner Michael McFall has been found not guilty in the insider trading case brought against him by the Financial Services Authority (FSA).

McFall was acquitted in Southwark Crown Court on 3 June after a unanimous verdict was delivered by an 11-member jury in just an hour and a half.

Also acquitted was Peter King, the former financial director of Neutec Pharma. The trial began on 19 April in front of Judge Peter Testar.

Former Dorsey & Whitney corporate partner Andrew Rimmington, who was also accused of insider dealing, was discharged last month on compassionate grounds.

After hearing the verdict on McFall and King, the FSA told the court they would offer no further evidence against Rimmington, leading the judge to order the jury to record a verdict of not guilty.

The verdict, which came on the same day as the FSA handed out its highest-ever civil fine to JP Morgan, will be viewed as a blow to the watchdog, which has moved to demonstrate a tougher stance against City wrongdoing in recent months. The case could also add weight to proposals from the new coalition Government to create a unified agency to tackle white-collar crime.

The trio was charged with eight counts of insider dealing relating to Novartis' 2006 takeover of Neutec. King also faced an additional charge of disclosing non-public information.

McFall was advised by Kingsley Napley criminal and regulatory partner Stephen Gentle with Bridget Petherbridge of QEB Hollis Whiteman instructed as counsel. King was advised by Irwin Mitchell regulation and investigations partner Sarah Wallace with Ken MacDonald QC of Matrix Chambers instructed as counsel.

Rimmington was advised by Saunders Law Partnership – a niche firm that provides publicly-funded representation.

Wallace commented: "The outcome of this case is unlikely to deter the FSA's forceful crackdown on City insider dealing and financial markets crime. The FSA's financial crime prosecution agenda is gathering momentum although it is currently not clear how the proposal for a unified fraud prosecution agency could affect the FSA."

In March, the FSA secured its most significant conviction to date at Southwark Crown Court with former Cazenove partner Malcolm Calvert being convicted on five counts of insider dealing. The case was the third successful prosecution for insider dealing by the City regulator, which hailed the result as a "milestone".

Roger Best (pictured) is a partner, and Patricia Barratt a senior associate at Clifford Chance.