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Institute member banned for insider dealing

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14th Oct 2014
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The ICAEW has excluded a former company director and accountant from its membership for five years for his involvement in an insider dealing case. 

Neten Shah, a chartered accountant based in Edgeware, was sentenced to 18 months in prison back in July 2012. In addition to the five-year ban, the institute fined him £2,500.

He was also banned from the CIOT in 2013 as a result of the same case, and ordered to pay costs of £1,950. 

Between November and December 2007 and in May 2008, Shah acquired price-affected securities on the regulated market.

According to the Telegraph Neten and others used sensitive information leaked from the print rooms of two of London’s biggest investment banks, JP Morgan and UBS, to "place trades before takeover bids became public, netting them hundreds of thousands of pounds as share prices moved." 

The case was brought by the FCA and resulted in Shah being convicted of two counts of insider dealing in July 2012. He was convicted of two of the six counts against him and sentenced to 18 months custody. He has now served his custodial sentence. 

A confiscation order was brought against Shah and others involved in the insider trading by the FCA at Southwark Crown Court last month. He and six others were ordered to repay £3.2m and he was separately ordered to repay a costs order of £100,000.

The ICAEW noted in its October disciplinary list that Shah personally benefited by almost £59,000. The former ICAEW member maintains his innocence, but has not yet appealed the decision. 

The tribunal said in sentencing: “Whilst it notes that the offence was not committed in Mr Shah’s professional capacity and that there may be restitution, the tribunal saw no reason to depart from this position, especially given the amount of money involved was substantial."

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By Moonbeam
14th Oct 2014 19:17

Banned for Just 5 years

Interesting, as presumably after that he can apply for membership yet again and the general public will be none the wiser that not all people with these esteemed initials after their names are trustworthy.

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By PG1234
15th Oct 2014 08:57

Unbelievable!

 

You get sent to prison for fraud and then they allow you back into the institute after a year or two.  They must be really desperate to hold onto those membership subscriptions!

 

What exactly do you have to do to be excluded for life.  Genocide perhaps?

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By Naren
15th Oct 2014 11:57

 Ban him for life. 

 Ban him for life. 

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By wilcoskip
17th Oct 2014 07:29

Murder

Wasn't there a report a few months back of an ICAEW member being readmitted after being convicted of murder? 

It really does seem that there's no offence so serious it could ban you for life.

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