Former analyst convicted of £1 million insider trading while working remotely during Covid lockdown

A former research analyst at Janus Henderson, Redinel Korfuzi, and his sister Oerta Korfuzi have been convicted of conspiracy to commit insider dealings and money laundering by the Financial Conduct Authority (FCA) for their involvement in a scheme between January 2019 and March 2021, during the Covid lockdown. The siblings were found guilty at Southwark Crown Court after entering pleas of not guilty.

The prosecution alleged that Mr. Korfuzi utilized confidential information acquired through his work to engage in insider trading by executing Contracts for Difference (CFDs) through accounts owned by his sister and two other accomplices. These actions reportedly took place under the guise of the Covid lockdown, allowing him to operate discreetly from home, shielded from the scrutiny of his colleagues.

During a span of six months, Mr. Korfuzi amassed approximately £963,000 as a result of his illicit activities, impacting the share prices of at least 13 companies, including Jet2, Daimler, and THG. Despite his efforts to conceal his participation, the FCA’s market monitoring systems detected the unauthorized trades.

In addition to insider trading, the Korfuzi siblings were also found guilty of money laundering, where they received funds from the proceeds of criminal activities through over 176 cash deposits totaling more than £198,000. The origins of these funds were unrelated to the charges of insider trading.

Although insider trading carries a maximum penalty of up to ten years in prison, the Korfuzis are subject to a potential seven-year sentence due to the timeline of the offenses, predating a rule modification that extended the punishment period. In cases of money laundering, offenders face a maximum sentence of 14 years imprisonment and/or fines.

During the sentencing hearing, His Honour Judge Milne emphasized the severity of the convictions, indicating that the imposed sentences would reflect the gravity of the crimes committed. Steve Smart, joint executive director of Enforcement and Market Oversight at the FCA, reiterated the organization’s dedication to combating financial crimes and maintaining market integrity, stressing that individuals profiting unlawfully from inside information would be identified and prosecuted.

Mr. and Ms. Korfuzi are scheduled to be sentenced on July 4, with the FCA planning to pursue confiscation orders to recover criminal proceeds. In contrast, their co-defendants, Rogerio de Aquino and Dema Almeziad, were acquitted of all charges, with the latter’s legal representative emphasizing that it was unreasonable to expect ordinary individuals to recognize and comprehend complex financial misconduct like insider trading. Janus Henderson, the employer of Mr. Korfuzi, was not implicated in the case or accused of any wrongdoing.