FSA charges four in high-stakes insider dealing probe
The Financial Services Authority (FSA) has charged four men with conspiracy to commit insider dealing in what the agency claims is its largest and most complex insider trading investigation to date. Martyn Dodgson, a former senior corporate broker at Deutsche Bank; Andrew Hind, a director of Deskspace Offices; private stock broker Benjamin Anderson; and businessman and investor Iraj Parvizi have been bailed to attend Westminster Magistrates' Court on 19 October. The allegations relate to activities between 2006 and 2010.
October 01, 2012 at 12:47 PM
3 minute read
The Financial Services Authority (FSA) has charged four men with conspiracy to commit insider dealing in what the agency claims is its largest and most complex insider trading investigation to date.
Martyn Dodgson, a former senior corporate broker at Deutsche Bank; Andrew Hind, a director of Deskspace Offices; private stock broker Benjamin Anderson; and businessman and investor Iraj Parvizi have been bailed to attend Westminster Magistrates' Court on 19 October. The allegations relate to activities between 2006 and 2010.
Dodgson is being represented by Giles Bark-Jones of Bark & Co, with Michael Potts of Byrne and Partners advising Anderson. Peter Hughmans of Hughmans Solicitors is acting for Parvizi, and Lewis Nedas' Miles Herman is representing Hind.
All four men were arrested in a series of raids at 16 addresses in London, the southeast and Oxfordshire in March 2010 as part of Operation Tabernula, a long-running joint investigation by the FSA and the Serious Organised Crime Agency.
At the time the FSA alleged that the City professionals had made significant profits by passing inside information to traders (either directly or via middlemen), who traded based on this information as part of a £3m conspiracy.
The FSA confirmed a number of individuals remain under investigation. At the time of the searches in 2010, three others were arrested, and since then a further two individuals have been arrested and taken in for questioning.
The prosecutions are the latest evidence of the tougher enforcement stance since the watchdog came in for intense criticism for failing to police major banks in the run-up to the 2008 banking crisis. The harder line from regulators has already led to a boom in white collar defence and investigations work for corporate law firms.
Fourteen convictions in relation to insider trading have so far been secured by the FSA, including the jailing last year of Dresdner investment banker Christian Littlewood. Four other individuals are also awaiting separate trials.
Commenting on the FSA's strategy, Stephenson Harwood litigation partner Tony Woodcock said: "It appears the FSA is now reaching those individuals whom they said it would take time to reach because of the complexity of the investigations. To begin with, and so that people would take them seriously, the FSA prosecuted the smaller cases: one or two individuals."
He added: "They always said more time would be needed to grapple with the serious players in cases where the misconduct is well-hidden by sophisticated individuals using sophisticated means. They are now beginning to do so. This is very much a natural progression."
The FSA in August appointed Tracey McDermott as its new director of enforcement and financial crime, replacing Margaret Cole, the former litigator who quit the body in March to head the legal team at PricewaterhouseCoopers. The appointment comes amid a period of upheaval for the FSA, which is being reformed as the new Financial Conduct Authority as part of a Government shake-up of market regulation.
Related:
This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.
To view this content, please continue to their sites.
Not a Lexis Subscriber?
Subscribe Now
Not a Bloomberg Law Subscriber?
Subscribe Now
NOT FOR REPRINT
© 2025 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
You Might Like
View AllSingapore Litigators Shift Competitive Landscape as Another Senior Duo Sets Up Own Shop
Squire Patton Boggs Hires 7-Lawyer Team to Beef Up ESG Practice in Brussels
2 minute readSkadden, White & Case Guide Citigroup Demerger in Mexico
Trending Stories
- 1Lawyers' Phones Are Ringing: What Should Employers Do If ICE Raids Their Business?
- 2Freshfields Hires Ex-SEC Corporate Finance Director in Silicon Valley
- 3Meet the SEC's New Interim General Counsel
- 4Will Madrid Become the Next Arbitration Hub?
- 5‘Ripe for SCOTUS’: Ruling Creates Circuit Split on NLRB’s Expanded Monetary Remedies
Who Got The Work
J. Brugh Lower of Gibbons has entered an appearance for industrial equipment supplier Devco Corporation in a pending trademark infringement lawsuit. The suit, accusing the defendant of selling knock-off Graco products, was filed Dec. 18 in New Jersey District Court by Rivkin Radler on behalf of Graco Inc. and Graco Minnesota. The case, assigned to U.S. District Judge Zahid N. Quraishi, is 3:24-cv-11294, Graco Inc. et al v. Devco Corporation.
Who Got The Work
Rebecca Maller-Stein and Kent A. Yalowitz of Arnold & Porter Kaye Scholer have entered their appearances for Hanaco Venture Capital and its executives, Lior Prosor and David Frankel, in a pending securities lawsuit. The action, filed on Dec. 24 in New York Southern District Court by Zell, Aron & Co. on behalf of Goldeneye Advisors, accuses the defendants of negligently and fraudulently managing the plaintiff's $1 million investment. The case, assigned to U.S. District Judge Vernon S. Broderick, is 1:24-cv-09918, Goldeneye Advisors, LLC v. Hanaco Venture Capital, Ltd. et al.
Who Got The Work
Attorneys from A&O Shearman has stepped in as defense counsel for Toronto-Dominion Bank and other defendants in a pending securities class action. The suit, filed Dec. 11 in New York Southern District Court by Bleichmar Fonti & Auld, accuses the defendants of concealing the bank's 'pervasive' deficiencies in regards to its compliance with the Bank Secrecy Act and the quality of its anti-money laundering controls. The case, assigned to U.S. District Judge Arun Subramanian, is 1:24-cv-09445, Gonzalez v. The Toronto-Dominion Bank et al.
Who Got The Work
Crown Castle International, a Pennsylvania company providing shared communications infrastructure, has turned to Luke D. Wolf of Gordon Rees Scully Mansukhani to fend off a pending breach-of-contract lawsuit. The court action, filed Nov. 25 in Michigan Eastern District Court by Hooper Hathaway PC on behalf of The Town Residences LLC, accuses Crown Castle of failing to transfer approximately $30,000 in utility payments from T-Mobile in breach of a roof-top lease and assignment agreement. The case, assigned to U.S. District Judge Susan K. Declercq, is 2:24-cv-13131, The Town Residences LLC v. T-Mobile US, Inc. et al.
Who Got The Work
Wilfred P. Coronato and Daniel M. Schwartz of McCarter & English have stepped in as defense counsel to Electrolux Home Products Inc. in a pending product liability lawsuit. The court action, filed Nov. 26 in New York Eastern District Court by Poulos Lopiccolo PC and Nagel Rice LLP on behalf of David Stern, alleges that the defendant's refrigerators’ drawers and shelving repeatedly break and fall apart within months after purchase. The case, assigned to U.S. District Judge Joan M. Azrack, is 2:24-cv-08204, Stern v. Electrolux Home Products, Inc.
Featured Firms
Law Offices of Gary Martin Hays & Associates, P.C.
(470) 294-1674
Law Offices of Mark E. Salomone
(857) 444-6468
Smith & Hassler
(713) 739-1250