Insider Trading Arrests in Sweden – Lars Soderfjell & Johan Carlstrom from Fingerprint Cards AB / Martin24/01/2017.
Bloomberg: Fingerprint Cards AB – a technology company that as recently as 2015 delivered investors a 1,600 percent stock-price gain now finds its name at the center of a criminal investigation in Scandinavia.
Sweden’s crime authority arrested current and former officials at Fingerprint Cards AB on suspicion of aggravated insider trading, sending shares of the maker of biometric sensors for smartphones to a 15-month low on Monday.
“Overall, there have been far too many twists and turns and strange events connected to Fingerprint,” Joacim Olsson, chief executive at the Swedish Shareholders’ Association, said by phone. “At some level, this indicates that the company hasn’t matured to the same degree that it has grown.”
Board member Lars Soderfjell and former Chief Executive Officer Johan Carlstrom were taken into custody, the Swedish Economic Crime Authority said on Monday. Authorities became suspicious after registering “large-scale sales” in Fingerprint shares before a Dec. 8 profit warning that subsequently pushed the stock down as much as 18 percent.
The investigation marks a setback in Fingerprint’s attempts to distance itself from Carlstrom, who’s also been charged separately for insider trading while he was still CEO. Meanwhile, the company is struggling to stay competitive as rivals offer cheaper alternatives to the technology that brought Fingerprint to fame: sensors used by the likes of LG Electronics Inc. and Lenovo Group Ltd.
The company says the arrests are linked to the individuals in question only, and don’t affect its operations.