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Nov. 29 (Bloomberg) -- A management consultant on trial for insider trading made about 500,000 pounds ($780,000) betting on tips from a hedge-fund employee about companies including Julius Baer Group Ltd. and Swatch Group AG, prosecutors said.
Rupinder Sidhu, who faces 23 counts of insider trading, used Hotmail accounts and MSN Messenger to covertly communicate with Anjam Ahmad, a trader at AKO Capital LLP, Michael Brompton, a prosecutor for the Financial Services Authority, told a jury in London.
Ahmad told Sidhu, a childhood friend, when AKO was about to buy or sell a stock so he could benefit from the effect on its share price, Brompton said. This was “carried out on an increasingly large scale and for increasingly large profits” between June and August in 2009.
The 40-year-old, who also faces one count of money laundering, pleaded not guilty in April. The trial is expected to last for three weeks.
Sidhu is accused of using spread-betting sites to speculate on stocks including Julius Baer, Swatch, Reed Elsevier Plc and Michael Page International Plc, making sums ranging from 1,600 pounds to 137,000 pounds, Brompton said
It is a “classic example of insider trading,” Brompton told jurors this morning.
--Editors: Christopher Scinta, Peter Chapman
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