Stay up to date with notifications from The Independent

Notifications can be managed in browser preferences.

Duo expelled for insider trading

Andrew Garfield
Thursday 22 April 1999 23:02 BST
Comments

Your support helps us to tell the story

From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.

At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.

The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.

Your support makes all the difference.

THE FINANCIAL Services Authority, the City watchdog, yesterday expelled Bill Dootson and Paul Sharples, two former stockbrokers with the Manchester firm of Henry Cooke Lumsden, from the securities industry, for profiting from insider dealing.

The disciplinary action came after an investigation by the Department of Trade and Industry into share price dealings ahead of the 1995 takeover of Fine Decor failed to find sufficient evidence to justify criminal prosecution.

Mr Dootson was also fined pounds 10,000 and required to pay costs of pounds 20,000, while Mr Sharples was fined pounds 5,000 and asked to pay pounds 5,000 costs.

Mr Dootson, who was head of Henry Cooke's Manchester private client business, has denied acting on inside information. Both have since left the firm following internal disciplinary proceedings.

According to the FSA, Mr Dootson and Mr Sharples profited by over pounds 11,000 when they took advantage of a tip off that a bid was in the offing for Fine Decor, a quoted company, to buy shares on their own account.

When a few days later a bid approach materialised, Mr Sharples and Mr Dootson realised that the tip off must have come from an insider.

According to the FSA, Mr Dootson and Mr Sharples continued to deal on the basis of information supplied by the insider. The client, it is claimed, at times resorted to the use of a mobile phone to avoid detection. Mr Sharples also allegedly encouraged other clients to buy shares in the company, and some did so. Both Mr Dootson and Mr Sharples later sold their shares at a profit.

The dealings are believed to have emerged after a routine investigation by the London Stock Exchange into the sharp rise in Fine Decor's shares in October 1995, just before the bid.

Neither Mr Sharples nor Mr Dootson were available yesterday for comment.

Henry Cooke said yesterday the firm had co-operated fully with the regulators. "The group values highly its strong investment management reputation, and wishes to emphasise that at no time were client assets put at risk and no client has suffered a loss as a result of this matter. The investigation focused on the personal dealings of the employees involved."

Join our commenting forum

Join thought-provoking conversations, follow other Independent readers and see their replies

Comments

Thank you for registering

Please refresh the page or navigate to another page on the site to be automatically logged inPlease refresh your browser to be logged in