The FCA has reported that Mohammed Zina was last week found guilty of six offences of insider dealing, and three offences of fraud, following a 12-week trial at Southwark Crown Court, following proceedings brought by them.
Between 2014 and December 2017, Mr Zina, 35, worked as an analyst at Goldman Sachs International, working in the “Conflicts Resolution Group” from 2016. Whilst in that department, he came into possession of inside information relating to potential mergers and acquisitions that Goldman Sachs were advising on.
Between 15 July 2016 and 4 December 2017, Mr Zina dealt in six shareholdings using this inside information: Arm Holdings plc, Alternative Networks plc, Punch Taverns plc, Shawbrook plc, HSN Inc and Snyder’s Lance Inc. The total profit from trading these stocks was approximately £140,486.
In order to carry out these trades, Mr Zina obtain three loans, fraudulently, from Tesco Bank, totalling £95,000.
He was sentenced to 22 months in prison on Friday (16 February). Sentencing Mr Zina, His Honour Judge Baumgartner, Recorder of Westminster said:
“You were under no illusion as to the importance of confidentiality. You betrayed that trust and cheated honest traders. This strikes at the very heart of financial markets and the trust the public places in them.”
Steve Smart from the FCA said “Mohammed Zina tried to cheat the market for his own personal gain by cynically trading on inside information. This conviction sends a clear message that economic crime is on our radar, and we will take action to uphold the integrity of UK markets.”
The FCA has commenced confiscation proceedings against Mr Zina, with a hearing listed for 27 September 2024.
As we have recently covered on CPD TAP, Insider dealing is a criminal offence punishable, on conviction, by a fine and/or up to seven years’ imprisonment for offences committed before 1 November 2021. This was increased to 10 years for offences committed on or after 1 November 2021. Fraud is punishable by a fine and/or up to 10 years’ imprisonment.
