The London Daily News

24 March, 2010 08:57 (GMT +00:00)

Biggest insider dealing ring busted by City watchdog in dawn raids

- FSA launches criminal investigations into possible insider dealings by "big City names"

City News Desk

The City is waking up to the news that the Financial Services Authority has raided the homes and offices of some of the largest names in the financial world with more than 140 officers of the FSA "swooping on premises across London" seizing document and and computers. In a statement issued by the FSA it said:

"Six men including two senior city professionals at leading city institutions and one city professional at a hedge fund have been arrested on suspicion of being involved in a sophisticated and long-running insider dealing ring."

The city institutions in question are believed to be according to the FT Deutsche Bank, BNP Paribas and More Capital.

The FSA said:

"It is believed that the city professionals passed inside information to traders (either directly or via middlemen) who traded based on this information and have made significant profits as a result."

"The operation was carried out by 143 FSA personnel together with officers from SOCA as part of a joint investigation that commenced in late 2007."

Only two weeks ago the FSA successfully prosecuted in the criminal courts Malcolm Calvert for passing on tips from source at his former employer Cazenove who then traded on the information.

All of the companies are co-operating "fully with the FSA" according to statements issued to the FT.

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