Fresh from its success in the Streaky trial, the FSA is bringing another insider dealing case to court.
Christian Littlewood, a senior investment banker, and his wife Angie Littlewood (also known as Siew Yoon Lew and Angie Lew) have been charged with 13 counts of insider dealing contrary to section 52 of the Criminal Justice Act 1993 and one count of conspiracy to commit insider dealing contrary to Section 1 of the Criminal Law Act 1977. They have been bailed to attend City of Westminster Magistrates’ Court on 6 April 2010.
The offences relate to trading in a number of different London Stock Exchange and AIM listed shares between 2000 and 2009.
However, those are probably the least interesting facts in the case. Littlewood, a former corporate finance adviser at Dresdner Kleinwort, Dawnay Day and Shore Capital, was arrested almost a year ago, along with an unnamed woman, all of which quickly made its way into the press.
For the record Littlewood was arrested while working at Shore Capital, although he had only been at the firm for a couple of months.
Littlewood’s entry from the FSA register:
Anyway, what’s more interesting here is the fact that a third suspect has been arrested in the Comoros Islands, a French overseas territory.
The suspect – a 33 year old Singaporean national – was arrested by the French authorities in Mayotte pursuant to a European Arrest Warrant issued by City of Westminster Magistrates’ Court at the request of the Financial Services Authority (FSA). He is due to appear before a local court later this week in relation to a request for extradition to the UK to face charges of insider dealing.
Now, this is the first time the FSA has sought the extradition of a suspect from overseas to stand trial for criminal charges in the UK. And it shows the FSA is prepared to use all the tools at its disposal in its war against insider trading.
Indeed, the Streaky case was notable for the use of an informant and the fact that the FSA decided to bring a case based on a patchwork of evidence rather than a killer fact.
That said, Streaky – former Cazenove partner Malcolm Calvert – is planning to appeal against his 21 month sentence.
From the Daily Telegraph:
Lawyers acting for Malcolm Calvert, who earlier this week was found guilty of five counts of insider trading in the shares of three UK companies ahead of the public announcement of takeover offers, said the term was excessive and that they would be launching an appeal against his sentence and conviction.
In a statement they said “Mr Calvert’s conviction on five counts of insider dealing is disappointing. The immediate custodial sentence of 21 months is excessive and Mr Calvert will be appealing both against sentence and conviction.”
The legal industry has been watching the case with interest, as Mr Calvert was found guilty despite the prosecution providing no evidence of the existence of the alleged source at his former employer.
One suspects lawyers will be watching the Littlewood case with as much interest.
As perhaps will the Conservative Party, which has plans to break up the FSA. An FSA that wants to expand.
From the Sunday Telegraph (emphasis ours):
Financial Services Authority to be transformed into an intrusive, interventionist regulator, says Hector Sants, the chief executive.
In his first interview since announcing his intention to step down in the summer after three years at the helm, Mr Sants also reveals that the FSA is to expand by more than 10pc and hire another 460 staff to perform its new investigatory role.
The expansion will be funded by a £41m increase in the regulator’s budget to £455m.
Related link:
FSA still has to ‘crack the big one’ – FT Alphaville