FSA wins second insider trading prosecution case

A COURT has found a former corporate broker intern and his father guilty of insider trading that netted them about &pound;110,000.<br /><br />Southwark Crown Court found Matthew Uberoi and his father Neel Uberoi guilty of 12 counts of insider dealing in the second such criminal case brought by the Financial Services Authority (FSA). <br /><br />Neel Uberoi made the money using inside information from Matthew Uberoi while the latter was an intern working on takeovers and other price-sensitive deals at a corporate broking firm in the summer of 2006, the FSA said in a statement. Matthew passed inside information to his father about deals in three companies. His father then bought shares in those firms and made substantial profits, the FSA said.<br /><br />FSA enforcement director Margaret Cole, said: &ldquo;We remain committed to stamping out this type of fraud by those trusted with inside information. Insider dealing damages the very confidence that underpins the integrity of our markets. By continuing to prosecute these crimes, we believe we are achieving credible deterrence in this area.&rdquo;<br /><br />Sentencing will take place on 10 December. The FSA is also currently prosecuting two other insider dealing criminal cases as it pursues a clampdown on financial crimes.