FCA fines oil rig consultant £309,843 for insider dealing
The Financial Conduct Authority (FCA) has fined Russel Gerrity £309,843 for insider dealing. Between October 2018 and January 2022, Gerrity used confidential information to profit from share trading.
Exploiting confidential drilling data
Russel Gerrity, an oil rig consultant, exploited his access to confidential information regarding oil and gas discoveries from October 2018 to January 2022.
He purchased shares in Chariot Oil & Gas Limited and Eco (Atlantic) Oil and Gas Plc ahead of positive announcements, profiting from subsequent price increases.
Additionally, Gerrity sold shares he already owned prior to negative announcements, successfully avoiding losses when prices fell.
The Financial Conduct Authority imposed a fine of £309,843 on Gerrity for these breaches of market abuse regulations.
This penalty reflects a 30% discount due to his agreement to settle the matter, with the original fine amount having been £387,448.
Industry vigilance and FCA systems
The FCA's investigation was initiated by Suspicious Transaction and Order Reports (STORs) submitted by a firm, underscoring the critical role of industry reporting in detecting market abuse.
During its subsequent inquiry, the FCA's internal systems identified further suspicious trades executed by Mr. Gerrity across multiple accounts and brokers, even while he was based outside the UK.
Steve Smart, Executive Director of Enforcement and Market Oversight at the FCA, stated that Mr. Gerrity 'abused his position to line his own pockets,' reaffirming the regulator's commitment to taking action against those who undermine market integrity and to recovering illicit gains.
Tackling financial crime remains a key priority within the FCA's 5-year strategy.
A clear signal for market integrity
This enforcement action underscores the Financial Conduct Authority's unwavering commitment to combating market abuse.
It highlights the effectiveness of collaborative efforts with industry through suspicious activity reporting.
The substantial fine sends a strong deterrent message to individuals considering similar illicit activities, reinforcing trust in market fairness.