Two ‘greed’-driven brothers who made tens of thousands of pounds by trading on inside information smiled and posed for a photo on the court steps after avoiding jail. Matthew West, 46, and Nikolas West, 44, cheated £42,948 between them from 2016 to 2020, Southwark Crown Court heard on Monday (September 1), but both men received suspended sentences.
Matthew West, of Hempstead Lane in Berkhamsted, admitted four counts of insider trading and one count of disclosing inside information, while Nikolas West admitted one count of insider trading. Some charges originally announced by the Financial Conduct Authority, referencing a total of eight stocks and a profit of £110,000, were not proceeded with.
Brokers would approach Matthew West, director of Zabel International Limited, with information about shares about to be sold at a premium or a discount, a practice known as ‘wall crossing’ (a legitimate activity that requires the investor to abide by a non-trading and confidentiality agreement). Both men were aware of the rules as experienced day traders.
But within minutes, Matthew West bought up shares or took short positions, on one occasion also instructing his brother Nikolas West to do the same. When the shares were announced to the public, the West brothers sold their shares, or closed their position, making thousands of pounds in profit. Judge Hehir said they ‘blatantly flouted the prohibitions’ and were ‘motivated by greed’.
“We are dealing with a man trading from his bedroom at home from a desktop computer using recorded telephone lines within minutes of being made inside. He used his own mobile phone, in his own name. It was a hopeless endeavour that was invariably going to lead to his apprehension,” said Mr Coltart.
Nikolas West looked particularly happy leaving court, throwing his hands in the air as he left the building without an unpaid work order, ‘principally because he no longer resides in the jurisdiction’ having moved to Dubai, said Judge Christopher Hehir. The brothers must pay £50,000 towards prosecution costs, understood to be more than £300,000 after an FOI from Compliance Corylated.
Matthew West made insider trading deals on Proactis Holdings Plc, Palace Capital Plc, Concha Plc, and Bushveld Minerals Limited. Matthew West also disclosed inside information about Asimilar Group Plc to Nikolas West, who used the information to deal.
After reading to the court a series of Telegram messages between the brothers about the Asimilar Group Plc deal, prosecutor Alexandra Healy KC said: “It’s indicative of the level of detail, the level of coordination between the brothers.”
Ms Healy said the offences were aggravated because both defendants were experienced day traders, acting deliberately, and, in the case of Matthew West, over a prolonged period of time. Judge Hehir agreed, adding that for Matthew West: “It’s an aggravating feature of this case that he got his brother involved.”
‘A hopeless endeavour’
Christopher Coltart KC, defending Matthew West, called for the judge to spare his client prison, citing caring responsibilities for his children and his high-level of cooperation. Mr Coltart also said he had not come across a case where the profit was any lower, adding: It’s right at the bottom of the scale.” Both defendants have agreed to pay back all the money.
The Financial Conduct Authority investigation began in June 2018. The men were arrested after closing their positions on the Assimilar Group Plc investment on January 8 2020, and gave no comment to police questions. They attended a voluntary interview in April 2024. After being charged, they appeared at Westminster Magistrates Court in October 2024.
Delivering his sentence, Judge Hehir said both defendants were ‘men of mature years’ and ‘family men’ with substantial caring responsibilities. Media publicity means it will also be ‘unrealistic’ for the men to get back into trading, added the judge. Given the length of time since the investigation began, and the relatively low profit, both men received suspended sentences.
Matthew West was sentenced to 15 months in prison suspended for two years, with 200 hours unpaid work. The judge said his general criminal conduct amounted to £181,000, which will be confiscated. He must also pay £38,000 towards prosecution costs.
Nikolas West was sentenced to six months in prison suspended for 12 months, with no unpaid work ‘principally because he no longer resides in the jurisdiction’. His general criminal conduct amounted to £102,000, which will also be confiscated. He must pay £12,000 towards prosecution costs.
Steve Smart, joint executive director of enforcement and market oversight at the FCA, said: “Matthew West repeatedly tried to make a quick profit at the expense of the rest of the market. As professional investors, the West brothers clearly knew what they were doing was wrong.
“Fighting financial crime is a priority for the FCA. We will clamp down hard on those like the Wests who undermine the integrity of UK markets.”
As the offences occurred prior to November 1 2021, they carried a maximum penalty of seven years imprisonment and/or a fine.
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