Three men in UK court on insider dealing charges

LONDON (Reuters) - Three men appeared in a London court on Wednesday charged with using inside information to trade in technology company Logica shares during its Canadian takeover in 2012, the Financial Conduct Authority (FCA) said.

Manjeet Singh Mohal, 58, appeared before Westminster Magistrates’ Court charged with two counts of insider trading and Reshim Birk, 53, and 51-year-old Surinder Pal Singh Sappal were each charged with one count.

They did not indicate a plea and were told to appear at the higher Southwark Crown Court on May 13, an FCA spokeswoman said. No further details were immediately available.

The three charges come after the FCA fined Kenneth Carver, a retired accountant, 35,000 pounds ($53,750) in March for buying shares in Logica after receiving price-sensitive information from family friend Ryan Willmott, a former Logica manager.

Willmott pleaded guilty to insider dealing in February and was sentenced to 10 months in jail.

Shares in Logica surged after the Anglo-Dutch company agreed to a $2.64 billion takeover by Canada’s CGI in May 2012.

The UK markets regulator, which only started cracking down on insider dealing in 2009, is prosecuting eight others for the crime and has secured 27 convictions.

Insider dealing is criminal offence in Britain and can be punishable by a fine and a prison sentence of up to seven years.

($1 = 0.6512 pounds)

Reporting by Kirstin Ridley, editing by Louise Heavens