A solicitor who was at City giant Clifford Chance has been charged with insider trading and fraud along with his younger brother, who was an analyst at investment bank Goldman Sachs International.
The Financial Conduct Authority (FCA) has commenced criminal proceedings against Suhail Zina, 33, and Mohammed Zina, 32.
They are charged with six offences of insider dealing, contrary to section 52(1) of the Criminal Justice Act 1993, and three offences of fraud by false representation, contrary to section 1 of the Fraud Act 2006.
Suhail Zina qualified as a solicitor in February 2017 and left Clifford Chance in 2018. Mohammed Zina was employed an analyst in Goldman Sachs’ conflicts resolution group.
The alleged offending took place between 15 July 2016 and 4 December 2017 and involved trading in ARM Holdings PLC, Alternative Networks PLC, Punch Taverns PLC, Shawbrook PLC, HSN Inc and Snyder’s Lance Inc.
The total profit from the alleged insider dealing was approximately £142,000.
The fraud charges relate to three personal loans obtained from Tesco Bank, totalling £95,000. The loans were stated to be for funding home improvements. Instead, the loans funded the alleged insider dealing.
The pair appeared at Westminster Magistrates’ Court on today. The case was sent to Southwark Crown Court for a plea and trial preparation hearing on 16 March.
Fraud is punishable by a fine and/or up to 10 years’ imprisonment. Insider dealing is punishable by a fine and/or up to seven years’ imprisonment.
A Goldman Sachs spokesman said: “The protection of client confidential information is of paramount importance to Goldman Sachs. The firm treats any misuse of client confidential information with the utmost seriousness.
“We have been working closely with the FCA to assist the FCA in progressing the criminal proceedings announced today. Neither the firm nor any other current or former employee of the firm is the subject of an investigation into the matters giving rise to the proceedings.”