Today, the Financial Conduct Authority (FCA) has announced the sentencing of Julian Rifat, as the final installment in the case against the former Moore Capital Management trader for insider trading.
During the relevant period, Mr. Rifat was a senior execution trader at Moore Europe Capital Management LLC. Mr. Rifat passed inside information, obtained during the course of his employment, to an associate, Graeme Shelley, who then traded for their joint benefit.
Graeme Shelley, previously a broker at Novum Securities, pleaded guilty to insider dealing with Rifat and with another associate, Paul Milsom, in March 2014; Paul Milsom, an execution trader at Legal and General Insurance Management Ltd, pleaded guilty to insider dealing in March 2013.
Mr. Rifat is the third individual to be sentenced for insider dealing offences arising out of Operation Tabernula – the FCA’s largest and most complex insider dealing investigation.
His Honour Judge McCreath said that Mr Rifat had acted “deliberately and dishonestly” but gave him credit for his guilty plea and additional credit for his significant personal mitigation.
Georgina Philippou, acting director of enforcement and market oversight, said: “Mr Rifat was a very experienced market professional. He was privy to highly sensitive information at the heart of some of the largest transactions in the UK financial markets during the latter half of 2009. Mr Rifat’s behaviour exploited financial markets during a particularly challenging time just as they were taking steps to recover from the 2008 crisis. The smooth running of our financial markets requires market professionals to play by the rules. Mr. Rifat knew the rules, but he abused them for his own benefit.”
For the official announcement from the FCA, click here.