Two brothers, Matthew and Nikolas West, have pleaded guilty to insider dealing offences following a prosecution by the Financial Conduct Authority (FCA).
The guilty pleas were entered at Southwark Crown Court on Friday.
Matthew West, 44, and Nikolas West, 46, both worked as professional day traders. Between November 2016 and January 2020, Matthew West obtained confidential, market-sensitive information through legitimate broker contacts.
He used this information to trade shares in four companies: Proactis Holdings Plc, Palace Capital Plc, Concha Plc and Bushveld Minerals Limited. He also unlawfully disclosed inside information regarding a fifth company, Asimilar Group Plc, to his brother, who used it to execute trades.
The illegal activity generated a combined profit of £42,948.
The FCA noted that while the brokers lawfully disclosed information under market practices known as “wall crossing” — which involves the sharing of non-public information under confidentiality agreements — Matthew West breached these obligations by using the information for personal gain and sharing it with his brother.
Both men pleaded guilty to six counts of insider dealing and will be sentenced on 3 July 2025. As the offences occurred prior to 1 November 2021, they carry a maximum penalty of seven years’ imprisonment and/or a fine.
The FCA also confirmed that it will seek confiscation orders to recover the proceeds of the crime.
Steve Smart, joint executive director of enforcement and market oversight at the FCA, said: “Matthew West repeatedly tried to make a quick profit at the expense of the rest of the market. As professional investors, the West brothers clearly knew what they were doing was wrong.
“Fighting financial crime is a priority for the FCA. We will clamp down hard on those like the Wests who undermine the integrity of UK markets.”
