Financial Conduct Authority prosecution results in suspended prison sentences and over GBP 280,000 confiscation for West brothers’ insider dealing

The Financial Conduct Authority announced that Matthew and Nikolas West have been sentenced for insider dealing following an FCA prosecution. Matthew West received a 15-month prison sentence suspended for two years and 200 hours of unpaid work, while Nikolas West received a six-month prison sentence suspended for 12 months. Although the brothers made profits of GBP 44,164.36, the court ordered them to pay back more than GBP 280,000, reflecting the full value of the shares traded through their criminal conduct, and to pay more than GBP 50,000 towards prosecution costs. The FCA identified the misconduct using market surveillance tools and found that the brothers coordinated and executed trades within minutes of Matthew West receiving confidential information from brokers under legitimate “wall crossing” arrangements, which he then unlawfully disclosed to his brother. They pleaded guilty to six instances of insider dealing involving AIM-listed companies between 2016 and 2020, with most trading undertaken by Matthew West. Confiscation orders of GBP 181,615 for Matthew West and GBP 102,150 for Nikolas West were made under the Proceeds of Crime Act 2002, using a “benefit” calculation that includes the value of shares traded and an inflation uplift, and must be paid within 14 days or they face additional prison terms.