7th November 2014
Former trader at hedge fund Moore Capital Julian Rifat has pleaded guilty to eight charges of insider dealing that netted him £250,000.
Rifat is third person to be charged under Operation Tabernula, the Financial Conduct Authority’s (FCA) largest and most complex insider dealing investigation.
Rifat, who will be sentenced in the New Year, admitted passing inside information obtained during his work as a trader to associated Graeme Shelley, who then traded to jointly benefit the paid. Earlier this year, Shelley, who was a broker at Novum Securities, pleaded guilty to insider dealing with Rifat and another associated Paul Milsom who was a trader at Legal & General – Milsom was sentenced in 2013.
FCA director of enforcement and financial crime Tracey McDermott said: ‘Insider dealing investigations are complex and long-running. Nevertheless we are committed to undertaking the painstaking analytical work which is required to bring these cases to count.
‘In this case measures were taken by those involved to conceal their activities – this included communicating via unregistered pay-as-you-go mobile telephones and the diversion of trading profits to third parties.
‘The guilty plea today is a reflection of our capability and determination to tackle these challenging and complex cases.’
Operation Tabernula has already seen 10 men arrested, seven charged and one jailed. The investigation started in 2007 but came to light in 2010 when police arrested six men in order to break up the insider dealing ring.