Siblings sentenced for insider trading

A pair of siblings, Redinel and Oerta Korfuzi, have been given jail sentences of up to six years for engaging in insider trading activities that netted them nearly £1 million. Redinel, a former research analyst at Janus Henderson, used his privileged access to confidential information to carry out illegal trades through accounts belonging to his sister and two other individuals. Convicted last month of conspiracy to conduct insider trading and money laundering between 2019 and 2021, the Albanian duo’s actions were characterized by the Financial Conduct Authority (FCA) as an attempt to manipulate the financial system for their financial gain.

During sentencing at Southwark crown court, Judge Alexander Milne likened the siblings’ case to a Greek tragedy, highlighting the downfall of individuals who believed themselves to be above the law. The Korfuzis exploited confidential data from 13 companies, including Daimler, Jet2, and THG, to generate profits close to £1 million. Operating out of their shared London flat and taking advantage of the flexibility of working from home amid the pandemic lockdowns, the pair engaged in short trading practices, wagering on stock price declines based on inside information obtained by Redinel.

Utilizing details from emails hinting at investor interest in equity raising or stock sales by existing shareholders, Redinel executed trades across several accounts, including those associated with his sister. The FCA intervened after detecting suspicious activity, leading to the siblings’ arrest in March 2021. In addition to insider trading, investigations also uncovered a complex international money laundering scheme, with funds flowing between the UK and Albania through accounts under the siblings’ control or operation.

Emphasizing the broader implications of their actions, Judge Milne noted that insider trading erodes public trust in financial market integrity, underscoring the severity of their offenses. Meanwhile, two other defendants previously implicated in the scheme, personal trainer Rogerio de Aquino and his partner Dema Almeziad, were acquitted of all charges. Responding to their exoneration, Almeziad’s lawyer Roger Sahota highlighted the unrealistic expectation of ordinary individuals to comprehend intricate financial violations that even professionals struggle to decipher.

Although Janus Henderson, the company where Redinel previously worked, was not implicated in any illegal activities, the successful prosecution of the Korfuzis represents a significant victory for the FCA. This outcome aligns with recent legal wins for the regulatory body, such as the upholding of a ban on Jes Staley, the former Barclays CEO, affirming its commitment to maintaining market integrity and prosecuting financial misconduct.