Former futures trader jailed for insider dealing

Former futures trader Richard Joseph has been sentenced to four years in jail for insider dealing.

Joseph was found guilty of six counts of conspiracy to deal as an insider - a scam which earning him close to £591,000.

The case, brought by the Financial Services Authority (FSA), was heard at Southwark Crown Court.

The court was told Joseph’s trading resulted in a net profit of £591,117, gained via trading between September 2007 and July 2008.  The ex-futures trader used information gained from two investment banks - with JP Morgan Cazenove print room manager Ersin Mustafa identified as passing on information - during the time.

During this stretch the FSA said Joseph transferred a 'substantial amount of money' to Mustafa.  It is understood Mustafa is now in north Cyprus, and was also a source of information in the prosecution of Ali Mustafa, Pardip Saini, Paresh Shah, Neten Shah, Bijal Shah and Truptesh Patel who were convicted and sentenced last July.

Sentencing Joseph, Judge Pegden said it was plain the former trader knew his actions were illegal.

'This was carefully planned and much discussed between you; before, during and after the trades. This was not isolated criminal behaviour,' he said.

Tracey McDermott, the FSA's director of enforcement and financial crime, added the latest conviction underscores the regulator's drive to crack down on insider dealing.

'Joseph embarked on a sophisticated scheme which was designed to enable him to profit from exploiting confidential price sensitive information and at the expense of other market users,' McDermott added.

'In less than a year his criminal conduct netted him sums of money most people can only dream of.  For a time he no doubt thought this was easy money. This verdict should send a clear message about the consequences to anyone else who might be tempted to do the same.'