Loans and Finance

Loans and Finance

Text

News and information about loans, money, debt, finance and business issues.

Wednesday, July 30, 2008

Fraud

Eight people were arrested yesterday in raids across London, as part of a crack down by the Financial Services Authority (FSA) against insider dealing.

Among the eight were a UBS AG back-office employee and a JPMorgan Cazenove Ltd sub-contractor.

Sarah Small, spokeswoman for UBS, is quoted on Bloomberg:

"A junior member of UBS's support staff in London has been arrested and has been suspended from work while the FSA carries out its investigation."

Tessa Murray, a spokeswoman for London-based JPMorgan Cazenove, said the unidentified individual was a "sub contractor who provided services in a support function and is no longer providing services."

Former Cazenove & Co. partner Malcolm Calvert appeared at a hearing last week after being charged with 12 counts of insider trading.

Aside from headline grabbing arrests in the City, it is also apparent that the level of fraud in the UK as whole is increasing (as people become negatively impacted by the liquidity crisis).

KPMG report that fraud in the UK increased by 50% in the first half of the year, compared to the previous six months, 128 cases of fraud went to courts in the year's first half.

In the same period, fraud against banks totalled more than in any whole year for the past 20 years, at more than £350 million.

Money brings out the worst in people.

No comments:

Post a Comment