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21/06/2012
Husband And Wife Guilty In FSAs Biggest Insider Trading Case
An investment banker and his wife were jailed last night after being found guilty in one of the biggest insider dealing cases ever pursued by the Financial Services Authority.
James Sanders, described as "the driving force behind the criminality", was jailed for four years. His wife, Miranda, and James Swallow, a former employee at Blue Index, were each given 10 months for the crime which allegedly netted £1.5m.
Southwark crown court in south London heard how Sanders had "acted out of greed and arrogance with a sense of invincibility", and boasted to his father about the inside information he had received.
Passing sentence, Mr Justice Simon told him: "You were supposed to be responsible for the company's compliance with its legal obligations. Instead of acting as you should, you broke the law repeatedly and over a long period.
"Sometimes defendants will be able to say that they acted recklessly rather than dishonestly; that is not the case here. These were deliberate and calculated acts of dishonesty."
During sentencing the couple sat hand in hand in the dock, in front of Swallow, with all three remaining motionless as their sentences were read out.
The £2.5m inquiry by the FSA found that Miranda Sanders's sister, Annabel McClellan, had been passing insider information on mergers in the US, where her husband was a partner for Deloitte's M&A division in San Francisco.
James Sanders created spread bets to cash in on the information for both himself and his clients. So confident was he in the deals and not being caught, he wrote a list of how he planned to spend his illegal windfall, including £100,000 on a "car fund", £150,000 on improvements to a second London home and £50,000 on watches, clothes, holidays and fine wines, the court heard.
The couple bought a £3.1m townhouse in Kensington, west London, a second home in Camden Town, north London, two Ferraris an E-type Jaguar and discussed buying a Bentley and Maserati.
The pair will appear at a confiscation order hearing now that criminal proceedings have been completed, while Swallow has already agreed to pay £440,000. James Sanders was banned from being a director for five years.
Annabel McClellan, Miranda Sanders's older sister, is currently serving an 11-month sentence in a US jail for her part in providing the information and has paid a $1m fine.
(H)
James Sanders, described as "the driving force behind the criminality", was jailed for four years. His wife, Miranda, and James Swallow, a former employee at Blue Index, were each given 10 months for the crime which allegedly netted £1.5m.
Southwark crown court in south London heard how Sanders had "acted out of greed and arrogance with a sense of invincibility", and boasted to his father about the inside information he had received.
Passing sentence, Mr Justice Simon told him: "You were supposed to be responsible for the company's compliance with its legal obligations. Instead of acting as you should, you broke the law repeatedly and over a long period.
"Sometimes defendants will be able to say that they acted recklessly rather than dishonestly; that is not the case here. These were deliberate and calculated acts of dishonesty."
During sentencing the couple sat hand in hand in the dock, in front of Swallow, with all three remaining motionless as their sentences were read out.
The £2.5m inquiry by the FSA found that Miranda Sanders's sister, Annabel McClellan, had been passing insider information on mergers in the US, where her husband was a partner for Deloitte's M&A division in San Francisco.
James Sanders created spread bets to cash in on the information for both himself and his clients. So confident was he in the deals and not being caught, he wrote a list of how he planned to spend his illegal windfall, including £100,000 on a "car fund", £150,000 on improvements to a second London home and £50,000 on watches, clothes, holidays and fine wines, the court heard.
The couple bought a £3.1m townhouse in Kensington, west London, a second home in Camden Town, north London, two Ferraris an E-type Jaguar and discussed buying a Bentley and Maserati.
The pair will appear at a confiscation order hearing now that criminal proceedings have been completed, while Swallow has already agreed to pay £440,000. James Sanders was banned from being a director for five years.
Annabel McClellan, Miranda Sanders's older sister, is currently serving an 11-month sentence in a US jail for her part in providing the information and has paid a $1m fine.
(H)
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