On July 1, the UK Financial Services Authority (FSA) announced that it had fined John Shevlin, an IT technician at Body Shop International plc (The Body Shop), £85,000 ($170,000) for market abuse.
The FSA found that Mr. Shevlin had established a short position on January 10, 2006 equivalent to 80,000 Body Shop shares through a Contract for Difference (CFD) based on inside information. The position was closed out the next day after The Body Shop announced trading results that were below market expectations. The inside information was obtained by improperly accessing confidential e-mails containing details of The Body Shop’s Christmas trading results and a draft announcement that The Body Shop had underperformed expectations.
The FSA did not attribute any fault to The Body Shop and Mr. Shevlin has ceased to be an employee.