Posts Tagged ‘UBS’

Square Mile rocked by “insider” swoops and arrests / Martin

30/03/2010. Tags: , , , , , , , , , , , | This post has no Comments

Times Online writes that The Serious Organised Crime Agency raids on some of banking’s big names have sent shock waves through the City of London.


The men are suspected of being part of what the watchdog has described as a “sophisticated and long-running insider dealing ring”. The FSA believes the ring made “significant profits” by trading on secret information.

This was the fifth set of arrests since it launched a crackdown two years ago, though this is markedly different from the others. Previous efforts have homed in on fringe players — interns at investment banks, retired stockbrokers, silver surfers with online trading accounts, and occasional rogues at second-tier firms.

Last week’s arrests struck at the heart of the City. Dodgson, 38, is known by the bosses of almost all Britain’s big banks and insurers. He has been a trusted adviser on deals for the likes of HBOS and Legal & General. He even played a bit-part in advising the Treasury on the banking bailout. His CV reads like a roll-call of the City’s biggest investment banks: Cazenove, UBS, Morgan Stanley, Lehman Brothers and Deutsche.

The same is true of the other suspects. Clive Roberts, who was also questioned on Tuesday morning, is head of equities at Exane BNP Paribas. His clients include some of London’s biggest traders, such as Roger Guy, star fund manager at Gartmore.

Julian Rifat, 41, whose Oxfordshire home was raided at 4.45am on Tuesday, is a trader with Moore Capital. Every device in his home that could store information was removed by investigators — including his children’s iPods.

Other suspects include well-known brokers and traders in the AIM market, regularly spotted out and about in City wine bars.

If the FSA can prove its case, it will shake the City to its core.

“I’m absolutely disgusted,” said one senior City banker. “The idea that someone in our line of work could do anything with inside information appals me. We get inside information all the time — it’s part of the job. You assume that everyone respects that. It’s what we do. You simply could not function if you were to spend all your time thinking that members of your team may be trading on that information.”

In the City’s biggest banks, it is assumed that insider dealing is something that happens somewhere else. There are armies of compliance staff monitoring every trade.

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Ex-UBS executive jailed for insider trading / Siim

04/11/2008. Tags: , , , , , , | This post has no Comments writes about a former UBS executive was on Monday sentenced to six and a half years in prison for his role in a Wall Street insider trader ring. Mitchel Guttenberg, a former executive director in the equity research department of UBS Securities, pleaded guilty in February to securities fraud.

He was accused of giving traders at several hedge funds advance warning of stock upgrades and downgrades over a number of years in exchange for hundreds of thousands of dollars. He was one of 13 people, including current and former employees of Morgan Stanley, UBS and Bear Stearns, charged in March last year in what US authorities called one of the most pervasive insider trading rings since the days of Ivan Boesky during the 1980s.

Mr Guttenberg – who had faced a maximum of eight years imprisonment under federal sentencing guidelines – was sentenced to six and half years in prison followed by three years of supervision.

He was also told to forfeit $15.81m, reflecting the proceeds of the insider trading scheme from 2001-2006, the US attorney for New York’s southern district announced on Monday.

Prosecutors said Mr Guttenberg repeatedly sold non-public information regarding UBS analysts’ securities recommendations to securities traders.

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UK FSA’s attack against alleged insider dealing ring / Mait

30/07/2008. Tags: , , , , | This post has no Comments

Eight arrests have been made in connection with a major investigation into insider dealing rings by the UK FSA. Workers at Swiss bank UBS and JP Morgan Cazenove, one of the oldest names in the City, were arrested for alleged insider dealing yesterday according to the sources of the Financial Times.

Arrests were carried out in cooperation with City Police who become involved because the FSA has no powers of arrest. City of London police and 40 FSA officials raided premises throughout London and the South East in what the regulator described as “a major ongoing investigation into insider dealing rings”.

The FSA suspects that the alleged ring traded on price sensitive information contained in deal announcements produced at one or both of the banks’ printing plants but which had yet to be made public.

This is the third high-profile action the FSA has taken in the past week over insider trading, in a sign of a tougher approach to a problem the regulator believes is rife in the City and a threat to the integrity of the markets.

Last week, a former partner at the investment bank Cazenove pleaded not guilty to a series of charges brought by the FSA. In only the second criminal case brought by the FSA, Malcolm Calvert was accused of acquiring shares, with inside information, in several companies earmarked for management buyouts, takeovers or mergers. Mr Calvert was remanded on bail, with the case adjourned until September 11.

The FSA launched its first criminal prosecution for insider dealing in January, it has ramped up its focus on market abuse in recent months, after an unprecedented slump in the shares of mortgage bank HBOS.

The FSA’s high-profile crackdown sends a serious warning to the City, where criminal prosecutions are seen as a new threat. The offence carries a maximum sentence of seven years in prison.

The FSA has more than doubled the size of its team of lawyers and investigators with criminal expertise and has announced plans to make more use of jail sentences, along with civil fines.

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