Niall Hearty of financial crime specialists Rahman Ravelli outlines the case.
Brothers who worked at bankers Goldman Sachs and city law firm Clifford Chance have appeared in court after being charged with insider dealing and fraud.
Goldman Sachs analyst Mohammed Zina, 32, and his 33-year-old brother Suhail Zina, a solicitor at Clifford Chance, were charged with six offences of insider dealing and three of fraud by false representation.
The Financial Conduct Authority (FCA) alleges that the two men made a £142,000 profit by insider dealing in the shares of companies, including Arm Holdings and Punch Taverns, in 2016 and 2017. The brothers are also accused of fraud relating to £95,000 in loans that were taken out with Tesco Bank. It is alleged that money was used for their insider dealing. Both men are reported to have left their jobs in 2018.
A trial date of 4 April 2022 was set at a plea and trial preparation hearing at Southwark Crown Court on 16 March 2021. The trial is expected to last eight weeks. Both men have been granted unconditional bail.
Fraud can be punished by fine and/or up to 10 years’ imprisonment. Insider dealing is punishable by a fine and/or up to seven years in prison.
As the FCA is the main agency when it comes to investigating insider dealing, it comes as no surprise that it has devoted time and resources to investigating and prosecuting this case. As it exists to ensure that financial markets are honest, fair and effective, the FCA will always look to investigate allegations of wrongdoing.