FIVE people linked to a brokerage that was closed down by the Financial Services Authority (FSA) last year were charged with insider dealing yesterday.
Blue Index, a contracts for difference (CFD) brokerage was closed down by the FSA in May 2009 just days after it was raided by police.
The FSA has charged the five with 17 counts of insider dealing between October 2006 and February 2008. James Saunders, co-owner and director, and his wife Miranda were charged with seven counts of insider dealing relating to trading ahead of seven takeover announcements.
Saunders has also been charged with three separate offences of disclosing inside information.
And Saunders along with Christopher Hossain, a former senior trader with the brokerage, were charged with encouraging clients to trade CFDs in relation to two stocks. Hossain has also been charged with insider dealing ahead of a takeover announcement.
Meanwhile, James Swallow, the other co-owner and director has been charged with three offences of insider dealing in relation to trading ahead of three takeover announcements.
Adam Buck, a former Blue Index employee, has been charged with one count of insider dealing ahead of a takeover announcement. All five were bailed to appear at City of Westminster magistrates’ court on 20 December.
The FSA has been intensifying its action against insider dealing recently. Its highest profit scalp to date being former Cazenove broker Malcolm Calvert who was jailed for 21 months in March.
It currently has 11 cases waiting to go to trial in the next year.