FSA, SEC and DoJ investigation leads to two people being charged by the SEC with insider dealing in the U.S.
1st December 2010In a parallel investigation by the Financial Services Authority (FSA), the Securities and Exchange Commission (SEC), Department of Justice (DoJ), and with assistance from the Federal Bureau of Investigation (FBI), a former Deloitte Tax LLP partner and his wife were yesterday charged by the SEC with insider trading in violation of the U.S. federal securities laws.
Arnold McClellan and his wife Annabel, of San Francisco, California were charged by the SEC with repeatedly leaking confidential merger and acquisition information to family members overseas in a multi-million dollar insider trading scheme.
The parallel investigation is directly related to the announcement on the 25 November 2010 where five individuals, including two former directors and one former senior trader of Blue Index Limited, a specialist Contract for Difference brokerage, were charged by the FSA with 17 counts of insider dealing, contrary to section 52 of the Criminal Justice Act 1993.
Margaret Cole, the FSA's managing director of enforcement and financial crime said:
"Whilst we cannot comment on the facts of this case, the insider dealing charges last week were the result of a coordinated effort and investigation between the FSA and the SEC. The action on both sides of the Atlantic demonstrates the way in which close co-operation between regulators is tightening the net on people who set out to abuse markets, wherever those people or markets are based."
