Former L&G trader jailed for two years for insider dealing

City A.M. Reporter
FORMER share trader Paul Milsom was jailed for two years yesterday for insider dealing, the first sentence to come out of the biggest investigation into the crime by the Financial Services Authority (FSA).

Milsom, 45, who was a senior equities trader at Legal & General, had pleaded guilty. He was ordered to pay £245,000, the total profit he made from insider dealing.

He will serve half his sentence before being released on parole.

Six others have been charged as a result of the FSA’s Operation Tabernula, which began in March 2010 as part of a wider crackdown by the FSA into market abuse. The FSA had been criticised in the past for a light-touch style of regulation exposed as inadequate by the financial crisis. A total of 10 arrests have been made as part of the investigation.

Passing sentence on Milsom, judge Jeffrey Pegden said the main impact of insider dealing was a “subversive effect on market confidence”.

Milsom cried in the dock as his lawyer, Simon Ray, described him as a hard-working man who had left school at 16 and worked his way up from a first job as an office junior.