The FCA convicts x2 for insider dealing and money laundering

The FCA has secured convictions against two individuals, Redinel Korfuzi and Oerta Korfuzi, for

• Insider dealing and money laundering offences netted them over £1 million. 

Their co-defendants,

• Rogerio de Aquino and Dema Almeziad,
• Were acquitted of all charges.

The court ordered a separate trial for a fifth defendant, Iva Spahiu.

• Her trial has been fixed for 28 June 2027. Temporary Reporting Restrictions pursuant to s4(2) Contempt of Court Act 1981 are in place to avoid a substantial risk of prejudice to the administration of justice in the trial of Ms Iva Spahiu. Consequently, there is to be no further reporting of any evidence concerning the particular involvement of Ms Spahiu.

The FIVE individuals were charged in January and February 2023.

KEY FACTS

INSIDER DEALING

1. Redinel Korfuzi was a research analyst at an asset management firm. He regularly obtained confidential, price-sensitive information for publicly traded companies as part of his role. 
2. Between 17 December 2019 and 25 March 2021, Mr Korfuzi conspired with his sister, Oerta Korfuzi, to use that confidential information to deal in the shares of at least 13 companies ahead of market announcements.  
3. The trades were executed through accounts held by Mr Korfuzi’s sister, a personal trainer (Rogerio de Aquino) and his partner (Dema Almeziad).
4. They used Contracts for Difference (CFDs), taking positions that the value of the relevant shares would go down and closing the positions after the market announcements.
5. The FCA’s market monitoring systems detected the suspicious trading despite their arrangements, which were designed to conceal Mr Korfuzi’s involvement in the trading and to maximise profits.    

MONEY LAUNDERING

1. Mr and Ms Korfuzi were also convicted of money laundering.
2. Between 1 January 2019 and 25 March 2021, they received dirty cash derived from the proceeds of crime, making 176 cash deposits totalling £198,210.
3. The source of the cash was unrelated to the insider dealing with which they were charged.     
4. The prosecution could not identify the source of the crime from which the cash was derived.

SENTENCING

1. Mr and Ms Korfuzi will be sentenced on 4 July 2025.
1. As these insider dealing offences predate 1 November 2021, when the maximum sentence available increased to 10 years, the insider dealing here is punishable by a fine and/or up to 7 years’ imprisonment.
2. Money laundering offence is punishable by a fine or up to 14 years’ imprisonment.

FCA

1. The FCA will also apply for confiscation orders to recover the crime proceeds. 
2. Steve Smart, joint executive director of enforcement and market oversight at the FCA, said: 
1. We are committed to fighting financial crime and protecting the integrity of our markets. Those who use inside information to unlawfully make profits should know we will identify them and bring them to justice.'

Notes to editors

1. Redinel Korfuzi’s date of birth is 20 May 1987.
2. Oerta Korfuzi’s date of birth is 10 September 1988.
3. Rogerio de Aquino’s date of birth is 4 November 1961.
4. Dema Almeziad’s date of birth is 30 January 1985.
5. The Financial Services and Markets Act 2000 gives the FCA powers to investigate and prosecute insider dealing, defined by the Criminal Justice Act 1993.
6. Tom Forster KC of Red Lion Chambers, Tom Broomfield, and Katherine Lloyd of QEB Hollis Whiteman Chambers prosecuted the trial on behalf of the FCA.

SOURCE

• https://www.fca.org.uk/news/press-releases/fca-secures-convictions-insider-dealing-and-money-laundering-worth-1-million
• https://www.fca.org.uk/news/press-releases/five-individuals-face-conspiracy-commit-insider-dealing-and-money-laundering-charges