In one of the FSA's most complex prosecution cases, six defendants have been found guilty of insider dealing.
Ali Mustafa, Pardip Saini, Paresh Shah, Neten Shah, Bijal Shah and Truptesh Patel have all been found guilty of insider dealing offences committed between 2006 and 2008. During this period, the group got hold of confidential and price-sensitive information from investment banks concerning proposed or forthcoming takeover bids. Using this information they placed spread bets ahead of the public takeover announcements, knowing that following such an announcement the price would rise. Collectively, the group made a profit of £732,044 from these activities.
A great deal of work was undertaken by the FSA to secure a victory in this case, involving examining hundreds of trading accounts and telephone records.
On 27 July the group were sentenced. Ali Mustafa, Pardip Saini and Paresh Shah were sentenced to three years and six months imprisonment. Neten Shah received a sentence of 18 months and Bijal Shah and Truptesh Patel were each sentenced to two years.