Insider Dealings: FCA Charges Five People with £1.5M Fraudulent Dealings

In line with its statutory duties, the Financial Conduct Authority (FCA) has charged five people to Court for insider dealings. The accused appeared before the Westminster Magistrates' Court on Wednesday, January 25, 2022.

Details of the Fraudulent Dealings

Former analyst of the British-American asset management Janus Henderson, Redinel Korfuzi, age 35, was charged alongside four others. The FCA identified the four others as 61-year-old Rogerio de Aquino, 37-year-old Dema Almeziad, 34-year-old Oerta Korfuzi, and 34-year-old Iva Spahiu. They were charged with violating laws against insider dealings between December 2019 and March 2021.

Redinel Korfuzi, according to the FCA, abused his position as an analyst at Janus Henderson. The FCA mentioned that Redinel:

"enabled timely and successful trading in 49 firms through accounts maintained by his co-conspirators." The regulator also claimed that Korfuzi and his accomplice traded CFDs on the firms using his privileged insider position. 

In augmenting its charges, the FCA claims that the accused carted away £1.5 million using Korfuzi's insider position. According to the FCA, the accused were also involved in money laundering of over 170 cash deposits totalling over £200,000."

The FCA further revealed that the defendants were detained in March 2021 due to their collaboration with the UK Metropolitan Police. However, four accused were released on bail before their court appearance on Wednesday.

The regulator said that the matter had been moved to Southwark Crown Court, and the hearing is scheduled for February 22, 2023. According to the FCA, the accused intend to enter a not-guilty plea.

FCA Insider Dealing Investigations and Penalty

Sections 401 and 402 of the Financial Services and Markets Act 2000 (FSMA) are the foundation of the FCA's role in criminal law enforcement. These sections expressly grant the FCA the authority to pursue certain criminal offences.

The FCA launched dual-track inquiries into alleged insider trading under Part V of the Criminal Justice Act of 1993. The regulator is also certified by Article 14 of the UK Market Abuse Regulation to conduct insider fraud investigations. 

The FCA can launch criminal charges against individuals and firms if its inquiry reveals gross misconduct and the Code for Crown Prosecutors is fulfilled. 

By the FCA's rule, Insider trading is punishable by a fine and/or up to 7 years imprisonment. However, the maximum penalty for insider trading is a fine and/or up to 10 imprisonments for offenses committed on or after November 1, 2021.