Three sentenced for insider dealing
Three people have today been handed prison sentences after pleading guilty to insider dealing at Southwark Crown Court.
James Sanders, director of contracts for difference (CFD) brokerage Blue Index, was sentenced to four years and disqualified as a director for five years.
Sanders’ wife Miranda was sentenced to 10 months while Blue Index co-director James Swallow was also given a 10-month sentence.
All three had previously pleaded guilty to charges of insider dealing in May having admitted receiving insider information from Arnold McClellan who passed information to James and Miranda Sanders about a number of mergers and acquisitions on the NYSE and NASDAQ exchanges.
The pair used information to commit insider dealing as well as disclosing information to others including James Swallow. Total profits generated by the trio were around £1.9m while Blue index clients made approximately £10.2m.
McClellan was a senior partner in a large US accounting firm, passing information on between October 2006 and February 2008. McLellan pleaded guilty to a charge brought against him by the Department of Justice in the US and is currently serving an 11-month sentence.
In passing sentence, judge Mr Justice Simon said: “Sanders and Swallow were responsible for ensuring that Blue Index complied with its obligations to act honestly and competently. They failed in that duty.”
Tracey McDermott, acting director of enforcement and financial crime at the FSA, says; “This was a case of systematic abuse by approved people of their privileged position in the market. We are determined to stamp out such abuse.”
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