"Mark Lyttleton, a former Equity Portfolio Manager at BlackRock Investment Management, has today been sentenced to 18 months reduced with credit to 12 months on two counts of insider dealing."
In 2012 the FCA commenced an investigation into suspicious trading by Mark Lyttleton. Lyttleton was suspected of placing trades in stocks on the basis of inside information gleaned by him in the course of his employment at BlackRock. Lyttleton worked as a Fundamental Equity Portfolio Manager in the EMEA Fundamental Equity Team at BlackRock throughout the relevant period.
As part of the investigation, the FCA with Law Enforcement support executed a search warrant at Lyttletons home address on 30 April 2013. Lyttleton was arrested and interviewed about this trading. During all interviews with the FCA, Lyttleton made no comment to all questions.
As part of the search various digital devices were seized from Lyttleton. Communications data obtained for his mobile phone demonstrated timely and relevant contact between Lyttleton and his asset managers when all the trading was ordered. This was further supported by incriminating text messages concerning trading in Cairn between Lyttleton and his asset managers.
On 2 November 2016 Mark Lyttleton pleaded guilty to two counts of insider dealing.
In sentencing, the trial judge HHJ Goymer remarked: “Insider dealing is not a victimless crime, I regard these offences as pre-meditated and blatantly dishonest.”
Mark Steward, Executive Director of Enforcement and Market Oversight, said: “Lyttleton’s insider dealing involved a gross abuse of the trust placed in him as a senior fund manager. He tried to hide his misconduct through the use of unregistered mobile phones and setting up a company in his wife’s maiden name in an overseas jurisdiction. None of this meant he could avoid detection.”
“Those who are tempted to insider deal, especially financial industry professionals, must know now they are more likely to be caught than ever before and, when caught, they will likely face a custodial sentence.”
