Senior manager found guilty of insider dealing and money laundering
26th November 2010In a case brought by the Financial Service Authority (FSA) Neil Rollins, a former senior manager of PM Onboard Limited, a waste industry firm, was today found guilty of five counts of insider dealing and four counts of money laundering at Southwark Crown Court after he traded on the basis of information he obtained as a result of his senior position and laundered the proceeds.
Based on his knowledge of the company's worsening financial position he sold his entire shareholding in PM Group plc and encouraged his wife to do the same. When Rollins became aware of the FSA's interest in his dealing he laundered the proceeds to try to hide his conduct.
The case is the fifth successful prosecution brought by the FSA as part of its ongoing drive to promote efficient, orderly and fair markets and to tackle market abuse.
Margaret Cole, managing director of enforcement and financial crime at the FSA, said:
"This is another milestone in our fight against market abuse. Insider dealing is not a victimless crime and we remain committed to stamping out this type of fraud by those trusted with inside information. Insider dealing damages the very confidence that underpins the integrity of our markets. Rollins' crime was aggravated by the fact that he sought to hide his conduct from the FSA by laundering the proceeds."
The sentencing and confiscation hearing will take place on 21 January 2011.
In August and September 2006, Rollins sold his entire shareholding in PM Group plc raising substantial proceeds (GBP173,500). When information about the company's worsening financial position was announced to the market the share price fell immediately by 17 % so that by selling his shares when he did he avoided substantial losses (approximately GBP45,000)1, he also encouraged his wife, Louisa Rollins, to do the same with her entire shareholding2. Rollins subsequently laundered the money by transferring the proceeds of his crime into accounts that he had set up in the name of his father, David Rollins.
