On November 13, the UK Financial Services Authority announced that it had fined Richard Ralph, former British ambassador to Peru and former executive chairman of AIM-listed mining company, Monterrico Metals Plc (Monterrico), £117,691.41 (approximately $174,000) and Filip Boyen £81,982.95 (approximately $121,500) for market abuse. They had dealt in Monterrico’s shares ahead of the takeover of Monterrico on the basis of inside information. The fines were made up of two elements: the disgorgement of the profit made by each of them and additional penalties of £105,000 and £52,500 respectively.
Although it was publicly known that Monterrico was in takeover discussions, the details of the negotiations concerning the precise terms of the transaction, in which Ralph was closely involved, were confidential. Knowing he was not allowed to buy shares, Ralph asked Boyen to do so on his behalf. Boyen did so and also bought further shares for himself.
Each was fined for dealing based on inside information and for improperly disclosing inside information. The additional penalty for each was reduced by 30% based on their cooperation and early admission of liability. The FSA also stated that, but for that co-operation, it would “have seriously considered taking criminal proceedings."