The court adjourned the case until 14 December to consider the appropriate level of confiscation and costs. The judge certified that the benefit obtained by Neel Uberoi from his insider dealing was the full worth of the shares purchased, £288,050.05.
The pair were found guilty of twelve counts of insider dealing after making £110,000 profit on 4 November 2009 at Southwark Crown Court in the second insider dealing case brought by the Financial Services Authority (FSA).
Passing sentence, His Honour Judge Testar said:
“This offence is cheating and it is important for economic and social wellbeing to have clean markets. The public rightly recoils from the idea of people with inside information having a license to print money.”
He also told them that their response to the investigation and the subsequent trial was devious and deliberately dishonest.
Margaret Cole, director of enforcement and financial crime at the FSA, said:
"The sentences Matthew Uberoi and his father are facing clearly demonstrate that insider dealing is a serious crime with serious consequences. Insiders are in a trusted position and abusing that trust undermines confidence in our markets. The FSA is determined to prevent that happening.
“This is our second successful criminal prosecution and there are more to come. Our recent successes reinforce the FSA’s credibility as a prosecutor. We are determined to do whatever is necessary to ensure that insider dealing is no longer seen as a way to make a quick profit but as a crime that does not pay.”
Earlier this year the Court of Appeal rejected Christopher McQuoid’s appeal against an eight month sentence he received in the first insider dealing prosecution brought by the FSA. The ruling emphasised that insider dealing was not just a regulatory infringement because it undermines public confidence in the financial system. As a result, public prosecutions and jail sentences are appropriate.
Matthew Uberoi was an intern at a corporate broking firm during the summer of 2006 and worked on takeovers and other price sensitive deals. On several occasions he passed inside information to his father in relation to three separate announcements. The emails used a code relating to Chinese food. His father then purchased shares in those companies and made £110,000 profit.
