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Matthias Knab, Opalesque for New Managers: Matthew and Nikolas West, both seasoned traders with more than 20 years of experience in the UK and overseas, have been sentenced for insider dealing in a prosecution brought by the Financial Conduct Authority (FCA).
Matthew West received 15 months' imprisonment, suspended for two years, along with 200 hours of unpaid work. His brother Nikolas received six months' imprisonment, suspended for 12 months. The court also ordered them to pay more than GBP280,000, reflecting the full value of the shares traded through their criminal conduct, not just the GBP43,000 profit they had made.
How they operated
Matthew West was frequently approached by brokers under strict confidentiality agreements, known as wall crossing, to discuss potential investments and capital raisings on London's Alternative Investment Market (AIM). Instead of keeping this information confidential, he unlawfully shared details with Nikolas. The brothers then coordinated trades within minutes of receiving the information, profiting ahead of public announcements.
Messages between them revealed how they discussed specific details of upcoming deals and how to secure maximum profit. Most of the trading was undertaken by Matthew, though both were fully aware their actions breached market rules. The FCA identified the misconduct using its market...................... To view our full article Click here
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