City watchdog to confiscate £1.69 million from insider dealers
The City watchdog is set to confiscate £1.69 million from a former investment banker and his close friend nearly two years after they were convicted of insider dealing.
The bulk of the Financial Conduct Authority's (FCA) confiscation order is aimed at Martyn Dodgson, a former Deutsche Bank managing director, and Lehman Brothers executive director, Morgan Stanley vice president of global capital markets.
He is set to pay £1.07 million.
The remaining £624,521 is to be collected from Andrew Hind, a former Topshop finance director and friend of Mr Dodgson, who was also a property developer and chartered accountant.
The regulator said the order must be paid within three months or the two will face a further seven and a half years and five and a half years in prison, respectively.
The two men - described as close personal friends - were jailed in 2016 after being found guilty of a conspiracy where heavy bets were placed on BSkyB, Scottish & Newcastle and Just Retirement shortly before the firms announced market-moving deals.
Mr Dodgson used his positions to source inside information which he passed on to Mr Hind, who would then order the trades.
The deals took place between November 2006 and March 2010.
Mr Dodgson was handed a four-and-a-half year prison sentence, the longest ever imposed for insider trading in the UK, while Mr Hind was given a three-and-a-half year term.
Commenting on the confiscation order, the FCA's executive director of enforcement and market oversight, Mark Steward, said: "Mr Dodgson and Mr Hind hatched an audacious plan to make significant illegal gains for themselves.
"They were driven by greed and self-interest, but through their actions they have lost their liberty, their livelihoods and their reputations.
"Insider dealing is a serious crime that undermines our markets.
"The FCA will continue to ensure that those engaged in such activity are held to account for their misconduct."