AKO Capital LLP Options Trader and Risk Manager Pleads Guilty to One Count of Insider Dealing for Directing Preferential Trades to a Broker in Exchange for Cash and Gifts

On May 18, 2010, former AKO Capital LLP options trader and risk manager Anjam Saeed Ahmad pled guilty to one count of insider dealing after entering into an agreement with the U.K.’s Financial Services Authority (FSA) under the Attorney General’s Guidelines on Plea Discussions in Cases of Serious or Complex Fraud.  On June 22, 2010, the Southwark Crown Court sentenced him to a suspended prison term, community service and a £50,000 fine.  That same day, the FSA issued a Final Notice requiring that Ahmad disgorge an additional £131,000 as restitution for profits he made from regulatory misconduct unrelated to his insider dealing.  We describe the conduct that led to the guilty plea, the relevant statutes and regulations and the FSA’s analysis of the proposed sanction (including its consideration of Ahmad’s cooperation as a mitigating factor in determining the appropriate sanction).

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