Ex-Goldman Sachs analyst, brother charged in UK with insider trading

0
16
imageStock Markets6 hours ago (Feb 16, 2021 12:00)

© Reuters. FILE PHOTO: The logo of the new Financial Conduct Authority is seen at the agency’s headquarters in the Canary Wharf business district of London

By Huw Jones and Iain Withers

LONDON (Reuters) – Britain’s financial watchdog said it has started fraud and insider dealing proceedings against two brothers, one who worked as a Goldman Sachs (NYSE:GS) analyst, the other as a lawyer at Clifford Chance.

The Financial Conduct Authority (FCA) said the proceedings against Mohammed Zina, 32, and his brother Suhail Zina, 33, relate to six offences of insider dealing and three offences of fraud by false representation, making an alleged profit of 142,000 pounds ($197,834).

“Mohammed Zina was employed by Goldman Sachs International as an analyst in the Conflicts Resolution Group in their London office. Suhail Zina was a solicitor at Clifford Chance, also in London,” the FCA said in a statement on Tuesday.

Goldman Sachs said the protection of confidential client information is of paramount importance for the bank, and it has worked very closely with the FCA.

“Neither the firm nor any other current or former employee of the firm is the subject of an investigation into the matters giving rise to the proceedings,” Goldman Sachs said.

The bank’s conflicts resolution group checks if the lender has any actual or perceived conflicts of interest in its advisory, financing, lending and other activities.

Clifford Chance, a member of the elite group of “magic circle” law firms, said Suhail Zina left in 2018, declining further comment.

The FCA said the alleged offences took place between July 2016 and December 2017, and involved trading in ARM Holdings (LON:ARM), Alternative Networks, Punch Taverns, Shawbrook, HSN, and Snyder’s Lance, companies that were involved in merger and acquisition deals during that period.

The fraud charges relate to three personal loans obtained from Tesco (LON:TSCO) Bank, totalling 95,000 pounds.

“The loans were stated to be for funding home improvements. Instead, the loans funded the alleged insider dealing,” the FCA said.

Mohammed and Suhail Zina appeared at Westminster Magistrates Court on Tuesday and the case was sent to Southwark Crown Court for a plea and trial preparation hearing on 16 March, the watchdog said.

($1 = 0.7178 pounds)

Ex-Goldman Sachs analyst, brother charged in UK with insider trading

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

LEAVE A REPLY

Please enter your comment!
Please enter your name here