Insider trading: Indian-origin men appear before UK court
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Last Updated: Sunday, April 18, 2010, 18:19
London: Seven men of Indian-origin, under legal net in connection with a 2.5 million pound insider trading case, on Sunday appeared in a court to face charges brought about by Britain's financial regulator.

The men, aged between 29 and 47, who appeared in a London magistrates court, allegedly traded on confidential information gleaned from the London printers of Swiss bank UBS and the brokerage firm Cazenove.

They are said to have traded in 12 firms listed on the London markets over a period of two years, including Premier Oil and the technology firm Misys, making themselves 2.5 million pounds.

Mitesh Shah, Neten Shah, Paresh Shah, Bijal Shah, Truptesh Patel, Ali Mustafa and Pardip Saini were first arrested in July last year, following a series of raids conducted by 40 FSA staff and police at addresses in London and the south-east.

The case was committed to crown court for a preliminary hearing on 22 April. The men have been placed on bail and forced to surrender their passports.

The FSA is seeking to extradite an eighth man from India, officials said.

The arrests were the result of an investigation lasting 21 months, and included the forensic examination of 75 electronic devices containing more than 200,000 files, 130 individual trading accounts, analysing more than 150,000 entries of publicly available information and taking more than 250 witness statements, the FSA said.

The Times daily had reported earlier this month that "two of those charged worked at leading investment banks -- JP Morgan Cazenove and UBS -- at the time of the alleged insider trading."

The charges brought against the seven relate to conspiring together to deal as an insider in price affected securities, while Mitesh Shah was also separately charged with money laundering.

The alleged illegal trades in Reuters Group Plc stocks were carried out by the accused between January one, 2007 and May 31, 2007, in Misys Plc between May one, 2006 and October 31, 2006, the regulator said.


First Published: Sunday, April 18, 2010, 18:19

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