FSA - Seven Charged in Insider Dealing Investigation

The Financial Services Authority (FSA) yesterday charged seven people with 13 charges in respect of conspiracy to deal on inside information obtained by the defendants from two major investment banks. One defendant has additionally been charged with an offence in relation to money laundering. A warrant for the arrest of another person in connection with this investigation has been issued.  The charges are based on allegations that cover a two-year-period and involve alleged unlawful profits of about £2.5 million.

These charges follow the searches and arrest of eight suspects on 29 July 2008.  The charges are unconnected with other searches, including the recent searches on Tuesday 23 March 2010.

Following the examination of intelligence and trading analysis the 21-month investigation involved a team of 35 investigators, lawyers and support staff examining   (amongst other things) more than 75 electronic devices containing more than 200,000 electronic files, 130 individual trading accounts, analysing more than 150,000 entries of publicly available information and taking more than 250 witness statements.

The defendants have been bailed to appear at City of Westminster Magistrate’s Court 14 April.

No further details can be confirmed at this time.

Charges:

• Pardip Saini, Paresh Shah, Neten Shah, Bijal Shah, Truptesh Patel and Mitesh Shah between the 1^st day of May 2006 and the 31^st day of October 2006 conspired together and with others to deal as an insider in price affected securities relating to shares in Misys Plc, within the meaning of Part V of the Criminal Justice Act 1993.
• Pardip Saini, Paresh Shah, Neten Shah, Bijal Shah, Truptesh Patel and Mitesh Shah between the 1^st day of June 2006 and the 31^st day of October 2006 conspired together and with others to deal as an insider in price affected securities relating to shares in Morgan Crucible Plc, within the meaning of Part V of the Criminal Justice Act 1993.
• Ali Mustafa, Pardip Saini, Paresh Shah, Neten Shah, Bijal Shah and Mitesh Shah between the 1^st day of January 2007 and the 28^th February 2007 conspired together and with others to deal as an insider in price affected securities relating to shares in Laidlaw International, within the meaning of Part V of the Criminal Justice Act 1993.
• Ali Mustafa, Pardip Saini, Paresh Shah, Neten Shah, Bijal Shah, Truptesh Patel and Mitesh Shah between the 1^st day of  January 2007 and the 31^st May 2007 conspired together and with others to deal as an insider in price affected securities relating to shares in Reuters Group Plc, within the meaning of Part V of the Criminal Justice Act 1993.
• Ali Mustafa, Pardip Saini, Paresh Shah, Neten Shah, Bijal Shah, Truptesh Patel and Mitesh Shah between the 1^st day of June 2007 and the 31^st December 2007 conspired together and with others to deal as an insider in price affected securities relating to shares in Biffa Plc, within the meaning of Part V of the Criminal Justice Act 1993.
• Ali Mustafa, Pardip Saini, Paresh Shah, Neten Shah, Bijal Shah, Truptesh Patel and Mitesh Shah between the 1^st day of August 2007 and the 31^st day of December 2007 conspired together and with others to deal as an insider in price affected securities relating to shares in Abbot Group Plc, within the meaning of Part V of the Criminal Justice Act 1993.
• Ali Mustafa, Pardip Saini, Paresh Shah, Neten Shah, Bijal Shah, Truptesh Patel and Mitesh Shah between the 1^st day of October 2007 and the 28^th day of February 2008 conspired together and with others to deal as an insider in price affected securities relating to shares in Premier Oil Plc, within the meaning of Part V of the Criminal Justice Act 1993.
• Ali Mustafa, Pardip Saini, Paresh Shah, Neten Shah, Bijal Shah, Truptesh Patel and Mitesh Shah between the 1^st day of November 2007 and the 31^st December 2007 conspired together and with others to deal as an insider in price affected securities relating to shares in Vega Group Plc, within the meaning of Part V of the Criminal Justice Act 1993.
• Ali Mustafa, Paresh Shah, Neten Shah, Bijal Shah, Truptesh Patel and Mitesh Shah between the 1^st day of November 2007 and the 28^th day of February 2008 conspired together and with others to deal as an insider in price affected securities relating to shares in GCap Media Plc, within the meaning of Part V of the Criminal Justice Act 1993.
• Ali Mustafa, Pardip Saini, Paresh Shah, Neten Shah, Bijal Shah, Truptesh Patel and Mitesh Shah between the 1^st day of August 2007 and the 31^st March 2008 conspired together and with others to deal as an insider in price affected securities relating to shares in Fiberweb Plc, within the meaning of Part V of the Criminal Justice Act 1993.
• Ali Mustafa, Pardip Saini, Paresh Shah, Neten Shah, Bijal Shah, Truptesh Patel and Mitesh Shah between the 1^st day of May 2006 and the 30^th day of April 2008 conspired together and with others to deal as an insider in price affected securities relating to shares in Enodis Plc, within the meaning of Part V of the Criminal Justice Act 1993.
• Ali Mustafa, Pardip Saini, Paresh Shah, Neten Shah, Bijal Shah, Truptesh Patel and Mitesh Shah between the 1^st day of May 2008 and the 31^st day of May 2008 conspired together and with others to deal as an insider in price affected securities relating to shares in Thus Group Plc, within the meaning of Part V of the Criminal Justice Act 1993.
• Mitesh Shah between the 1^st day of May 2006 and the 31^st day of May 2008 entered into or became concerned in an arrangement, namely the placing of spread bets, which he knew or suspected facilitated the acquisition, retention, use or control of criminal property, namely another person’s benefit from insider dealing, by or on behalf of another person, contrary to section 328 of the Proceeds of Crime Act 2002.