Morrisons’ former treasurer and head of tax, Paul Coyle has been sentenced to a year’s imprisonment after pleading guilty to insider training.
The Grocer reported last September that the Financial Conduct Authority (FCA) had charged Coyle with two offences relating to the insider dealing of shares in Ocado between February and May 2013.
Leeds Crown Court heard how Coyle used his long-term partner Emma Baker’s trading accounts to buy Ocado shares, abusing his position. Baker told the FCA she was unaware of Coyle trading in the shares.
An announcement that the two companies were engaged in £216m talks was announced 17 May. Coyle sold his shares on the same day making a £60,000 profit.
He continued to buy and sell shares as the price fluctuated during market speculation.
He sold the remainder after the official announcement Morrisons and Ocado had reached formal agreement.
Coyle resigned when the offences were discovered.
Mr Justice Globe said Coyle’s breach of trust was “significant” and his actions “deliberate” and “dishonest”.
Coyle was ordered to pay £203,234 under the Proceeds of Crime Act or face a further period of imprisonment and ordered to pay £15,000 court costs.
Morrisons said: “While this was a regrettable case of an individual acting alone we are pleased that our governance and processes were sufficiently robust to enable the authorities to achieve a successful prosecution.
“We are also pleased that the case has concluded and that the FCA’s investigation did not raise wider concerns for the company.”
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