Morrisons exec is charged with insider dealing
MORRISONS’ former treasurer and head of tax has been charged with insider dealing ahead of the retailer’s £216m tie-up with Ocado last year.
The Financial Conduct Authority (FCA) said yesterday it had charged Paul Coyle with two offences of insider dealing. He will now face criminal proceeding and is set to appear before Harrogate Magistrates’ Court on 30 October.
The charges add yet another scandal to the UK’s already beleaguered food industry, after Tesco launched an investigation into a £250m profit error last week. The City is also bracing itself for further bad news tomorrow, with Sainsbury’s expected to report a steep decline in second-quarter sales.
Coyle was suspended from his role at Morrisons following his arrest last December by the Yorkshire police. The charges relate to trading in Ocado shares between February and May 2013, before its online deal with Morrisons was announced. Ocado’s shares soared last year on the back of the deal.
A spokesperson for Morrisons said the investigation “did not concern Wm Morrison Supermarkets nor any other Morrisons’ employee”.
Insider dealing is punishable with a sentence of up to seven years.