Six arrested in UK insider trading probe

29 May 2009

Six people have been arrested as part of a Financial Services Authority (FSA) investigation into suspected insider trading in the UK.

The five men and one woman aged between 27 and 34 were detained yesterday (May 27th) after search warrants were executed at eight properties in London and Essex, the regulator said.

Investigators from the FSA were joined by officers from the City of London Police Economic Crime Directorate for the operation, which is part of an ongoing drive to stamp out market abuse.

Yesterday's detentions mark the third set of arrests carried out by the FSA and City of London Police over alleged insider dealing in the last 12 months. The arrests all relate to separate cases.

In March, solicitor Christopher McQuoid and his father-in-law James Melbourne were convicted in the first criminal prosecution of organized insider dealing brought by the FSA.

They were each jailed for eight months after Mr McQuoid was found to have used privileged information regarding an imminent takeover of technology firm TTP Communications to tip off Mr Melbourne, who made a profit of £48,919.20 ($77,872.27) illegally trading the company's shares.