LGIM employee arrested in FSA insider dealing investigation
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An employee of Legal & General Investment Management (LGIM) was arrested as part of a Financial Services Authority (FSA)investigation into alleged complex insider dealing.
The Serious Organised Crime Agency arrested the man after carrying out searches at one London business address and two domestic premises in London and Kent.
A statement issued by the asset manager says: “We can confirm that a 44-year-old man employed by Legal & General Investment Management was arrested on 16 February and released on bail pending further enquiries.
“We are not aware of any detriment caused to customers or any impact on our financial results.”
The FSA says the arrest is linked to raids carried out in March 2010, when it arrested seven individuals. Some of the arrested were alleged to have passed inside information to traders to make “significant profits” on the back of the tip-offs. A further arrest was made in April 2011.
Those questioned in the case included Julian Rifat of hedge fund Moore Capital, Deutsche Bank’s Martyn Dodgson, Exane’s Clive Roberts, Graeme Shelley of Novum Securities and Iraj Parvizi, director at Aria Capital. None of the arrested were charged, although they remain under investigation.
The FSA has secured 11 convictions related to insider dealing to date and is currently prosecuting another 15 individuals.
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