FCA launches criminal proceedings against five individuals for £1.5M insider trading scheme
The UK Financial Conduct Authority (FCA) has started criminal proceedings against five individuals for conspiracy to commit insider dealing and money laundering.
The FCA alleges that Redinel Korfuzi, Oerta Korfuzi, Iva Spahiu, Rogerio de Aquino and Dema Almeziad conspired to commit offences of insider dealing between 17 December 2019 and 25 March 2021. Specifically, the FCA alleges that Mr Korfuzi used confidential inside information he accessed as an Analyst in his former role at Janus Henderson to enable timely and profitable trading in 49 companies through accounts held by his co-conspirators.
In each case, the defendants used Contracts for Difference (CFDs) in relation to each of these companies, betting that the value of shares would go down after the announcements. In doing so, they were able to realise profits of approximately £1.5 million.
All five are also charged with money laundering offences relating to over 170 cash deposits totalling approximately £200,000.
In March 2021 a multi-site search and arrest operation was conducted by the FCA with the assistance the Metropolitan Police, and four of the defendants were on police bail until they appeared before Westminster Magistrates’ Court today.
The case was formally sent to Southwark Crown Court, where the defendants will appear on 22 February 2023 for a Plea and Case Management Hearing. All the defendants have indicated Not Guilty pleas.
Janus Henderson has co-operated fully with the FCA’s investigation.
Insider dealing is punishable by a fine and/or up to 7 years’ imprisonment for offences that occurred during the period of these alleged offences. For offences committed on or after, 1 November 2021, the maximum sentence for insider dealing is a fine and/or up to 10 years’ imprisonment.
Money Laundering is punishable by a fine and/or up to 14 years’ imprisonment.