Ex-LGIM sales trader to plead guilty in FSA insider dealing probe

A former sales trader at Legal & General Investment Management (LGIM) has indicated he will plead guilty in a Financial Services Authority (FSA) investigation into alleged insider dealing offences, the Financial Times has reported.

Paul Milsom told Westminster Magistrates Court on Wednesday that he intended to plead guilty to one count of insider trading brought by the FSA as a result of Operation Tabernul, the FT reported.

He appeared in court alongside Graeme Shelley, a former broker at Novum Securities, who indicated no plea.

Milsom, of Greenwich, London is accused of disclosing inside information to Shelley, of Amersham, Buckinghamshire, between October 30 2008 and March 16 2010, according to the FT. Shelley is accused of dealing in securities with inside information between October 30 and November 4 2008. 

Milsom was one of seven suspects arrested in March 2010 after a series of dawn raids at the homes of employees of companies including Deutsche Bank and Moore Capital.

The raids were conducted by the FSA with assistance from the Serious Organised Crime Agency. LGIM confirmed in February last year that one of its employees had been arrested as part of the FSA's insider trading investigations.

According to the FT, five defendants have already been charged in connection with the investigation, although none of those defendants has formally entered a plea, with any trial not expected to start until early 2014.