In the UK, Christopher McQuoid, former general counsel of TTP Communications, and his father-in-law, James Melbourne, were both found guilty on one count of insider dealing by the Southwark Crown Court. The case marks the first criminal conviction for insider trading ever obtained by the UK’s Financial Services Authority (FSA), the Times Online reports.
The court found that McQuoid passed confidential information about an imminent takeover offer for TTP to Melbourne, who then bought shares. After the takeover was announced, the stock price jumped and Melbourne sold the stock, splitting the £48,900 profit with McQuoid. The Times Online reports that the convictions could lead to jail terms when the pair are sentenced on Monday. The crime of “insider dealing” carries a maximum jail term of seven years. McQuoid’s lawyer stated that they are “actively considering and anticipating submitting an appeal.”