In the November 14, 2008, edition of Corporate and Financial Weekly Digest we reported the UK Financial Services Authority’s (FSA’s) imposition of fines on Filip Boyen and Richard Ralph for dealing in the shares of Monterrico Metals Plc (Monterrico), an AIM-quoted company, on the basis of inside information. On January 14, the FSA fined Erik Boyen, the brother of Filip Boyen, £49,000 ($71,500) in addition to requiring a disgorgement of profits of £127,254.85 ($185,856).  

Richard Ralph, then the executive chairman of Monterrico, was involved in confidential discussions related to a proposed takeover. Before any information became public, he asked Filip Boyen to buy Monterrico shares on his behalf. Filip Boyen then asked his brother Erik Boyen to buy shares on his behalf. Filip Boyen thereby passed on inside information. Erik Boyen was aware that the company was in takeover discussions and knew that Mr. Ralph was a Monterrico insider and had asked his brother to buy shares in the company. Erik Boyen also encouraged a third party to deal in Monterrico shares.  

Erik Boyen settled at an early stage of the investigation and qualified for a 30% discount on the fine element of the penalty.  

www.fsa.gov.uk/pubs/final/erik_boyen.pdf