On March 27, a lawyer and his father-in-law were found guilty of insider dealing in the first insider dealing criminal prosecution brought by the Financial Services Authority (FSA). The FSA has begun to bring criminal insider dealing cases as part of its tougher approach to tackling market abuse. Three further cases are currently pending.
The jury found that Christopher McQuoid, the general counsel at TTP Communications (TTP) had passed inside information to his father-in-law who traded and made a profit using the information. The FSA has obtained a court order freezing the profits made from the trade.
Margaret Cole, the FSA’s director of enforcement stated: “By pursuing a criminal prosecution in this case, the FSA has shown that we will take tough action to achieve our aim of credible deterrence in the financial markets. Mr. McQuoid took advantage of the trust placed in him as TTP’s legal counsel, and with his father-in-law, has been found guilty of cheating the market. Anyone engaging in similar acts should see this as a clear warning that the FSA intends to bring all its powers to bear to protect the integrity of our markets.”