Two brothers, Matthew and Nikolas West, have been sentenced for insider dealing following an FCA prosecution.
Matthew West received a 15-month sentence, suspended for two years, along with 200 hours of unpaid work. Nikolas West was given a six-month sentence, suspended for 12 months.
Both experienced traders, with more than 20 years in the industry, were found to have coordinated trades within minutes of receiving confidential market information.
The FCA’s surveillance systems flagged the activity, and investigators later found the brothers made nearly £43,000 in profit.
The court ordered them to pay back more than £280,000 – the full value of the shares traded illegally, not just their gains.
Matthew West, regularly approached by brokers with opportunities bound by confidentiality agreements, unlawfully shared inside information with his brother.
Messages between the pair revealed discussions on how to exploit the information for maximum profit, with most trades executed by Matthew.
In May, the brothers pleaded guilty at Southwark Crown Court.
In sentencing, Judge Christopher Hehir said: “Markets cannot operate fairly if they are rigged by dishonest operators. Grave economic harm may result, so deterrence is important.”
Steve Smart, FCA executive director of enforcement and market oversight, added:
“Greed got the better of them. The West brothers knew the rules and still chose to break the law.
“This should serve as a reminder that the FCA will act against those who abuse their position – including depriving them of their ill-gotten gains.”
The case follows other recent FCA enforcement actions, including the sentencing of Redinel and Oerta Korfuzi, reinforcing the regulator’s commitment to tackling market abuse.
