Brothers in qualms: Goldman and Clifford Chance City bros charged with insider dealing and fraud
Two brothers, one working for Goldman Sachs and the other for Clifford Chance, have been charged with insider dealing and fraud offences.
Following an investigation, city watchdog the Financial Conduct Authority (FCA) has commenced criminal proceedings against Mohammed and Suhail Zina.
The proceedings relate to six offences of insider dealing, and three offences of fraud by false representation.
Mohammed Zina, 32, was at the time employed by Goldman Sachs International as an analyst in the conflicts resolution group in the London office. Suhail, 33, was a solicitor at magic circle firm Clifford Chance.
The alleged offences took place between 15 July 2016 and 4 December 2019 and involved the trading of six stocks: ARM Holdings, Alternative Networks, Punch Taverns, Shawbrook, HSN and Snyder’s Lance.
Total profit from the alleged insider dealing was approximately £142,000, according to the FCA.
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 brothers appeared at Westminster Magistrates’ Court on 16 February 2021. The case was sent to Southwark Crown Court for a Plea and Trial Preparation Hearing on 16 March 2021.
A spokesperson for Goldman Sachs said the city giant had been working closely with the FCA in on progressing proceedings against the brothers.
“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,” they added.
Clifford Chance was contacted for comment.
Fraud and insider dealing charges are both punishable by a fine and/or up to 10 years imprisonment.