An investment banker is facing insider dealing charges from the U.K.’s Financial Conduct Authority (FCA) for allegedly tipping a friend to a potential takeover in advance.
On Wednesday, the regulator announced that an employee of the U.S.-based investment bank Jefferies International Ltd., Bobosher Sharipov, has been charged with allegedly leaking confidential information about a possible takeover of a corporate client, GCP Student Living plc, to a close friend, Bekzod Avazov, who then allegedly traded on that inside information.
GCP was a REIT focused on student housing that was acquired by a consortium in a £969-million deal in late 2021.
The FCA said the charges are the result of market surveillance, which identified suspicious trading in GCP’s shares back in 2021.
“The FCA’s specialist market monitoring systems identified Mr Avazov’s trades as suspicious given the timing and profit. FCA analysis of public records uncovered that Mr Sharipov and Mr Avazov were former colleagues and flatmates,” it said in a release.
The allegations have not been proven.
The case has been sent to Southwark Crown Court in London. The defendants had their first court appearance Wednesday, but neither defendant has entered a plea to the charges, the FCA noted.
“We believe that Mr Sharipov took advantage of his position so he and his friend Mr Avazov could benefit through committing crime and gaming the system,” said Steve Smart, executive director of enforcement and market oversight at the FCA, in a release.
“The integrity and cleanliness of our markets rely on trust. It is right that this case is heard by the courts.”
The FCA said Jefferies has fully cooperated with its investigation.