Brother and sister guilty of £1m insider trading over Jet2 and Daimler shares
Redinel Korfuzi and his sibling Oerta Korfuzi were charged by the Financial Conduct Authority (FCA) with conspiracy to commit insider dealing and money laundering, between January 2019 and March 2021, and were found guilty at Southwark Crown Court after pleading not guilty.
Mr Korfuzi was accused of using confidential information gathered during his work to place a particular type of complex trade, called Contracts for Difference (CFDs), through accounts owned by his sister and two other co-defendants.
In this manner, Mr Korfuzi made £963,000 in around six months and was 'was at the absolute centre' of matters, said the prosecutor, benefitting from share price changes of at least 13 companies including Jet2, Daimler and THG.
Their trading was detected by FCA market monitoring systems, despite Mr Korfuzi's apparent efforts to hide his involvement.
The brother and sister were also convicted of money laundering, with the FCA saying they received money from the proceeds of crime, with more than 176 cash deposits totalling over £198,000. The source of that money was unrelated to charges of insider dealing.
Insider trading is punishable by up to ten years in prison, but these charges predate a rule change increasing that time, meaning the pair face a maximum of seven years and/or a fine.
For money laundering, a fine and/or up to 14 years imprisonment is the maximum.
His Honour Judge Milne told the pair on Thursday: 'These are serious matters of which you've been convicted and the sentences will reflect that.'
Steve Smart, joint executive director of Enforcement and Market Oversight at the FCA, said: 'We are committed to fighting financial crime and protecting the integrity of our markets. Those who use inside information to unlawfully make profits should be aware that we will identify them and bring them to justice.'
Mr and Ms Korfuzi are set to be sentenced on 4 July and the FCA are also to apply for confiscation orders to recover the proceeds of crime.
The jury cleared their two co-defendants, Rogerio de Aquino - Mr Korfuzi's personal trainer - and Dema Almeziad - Mr Korfuzi's partner - of both charges. Their accounts were also used to place trades but they said in statements they had been 'hoodwinked' and 'duped'.
Ms Almeziad's lawyer Roger Sahota said in a statement: 'This case should never have been brought. There was no evidence that Ms Almeziad knew anything about insider dealing and it is wrong to expect ordinary people to understand or spot complex financial conduct that even professionals struggle with.'
Janus Henderson was not involved in the case or accused of wrongdoing.
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