FSA insider trading case against lawyer duo kicks off in court

The first hearing has taken place in the case against two lawyers accused of insider trading by the Financial Services Authority, marking the fifth criminal prosecution for insider trading brought by the regulatory body in the last 18 months.

Former Dorsey & Whitney corporate partner Andrew Rimmington and former McDermott Will & Emery partner Michael McFall - along with the former financial director of Neutec Pharma, Peter King - have been charged with insider dealing relating to Novartis's 2006 takeover of Neutec.

The trio are charged with eight counts of insider dealing in total, while King faces a charge of disclosing non-public information.

Rimmington is charged with acquiring a total of 6,961 shares in Neutec Pharma on the basis of the inside information on three separate occasions.

McFall is charged with disclosing the inside information to Rimmington and on three separate occasions acquiring a total of 3,955 shares in Neutec on the basis of the inside information.

McFall and Rimmington are charged jointly with acquiring 3,012 shares in Neutec on the basis of the inside information.

All three were granted unconditional bail this morning at Horsferry Road Magistrates Court with 10 July pencilled in as the date of the next hearing for one of the defendants, with a committal hearing scheduled for 28 July.

Rimmington has instructed Barlow Lyde & Gilbert financial services regulatory partner Ian Mason, while McFall is understood to have turned to Kingsley Napley criminal and regulatory partner Stephen Gentle. King is being advised by Irwin Mitchell regulations and investigations partner Sarah Wallace.

In a statement on behalf of his client, Mason said: "Mr Rimmington vehemently denies the allegations made by the FSA and will be strongly contesting all allegations that have been made against him.

"After an FSA investigation that has lasted almost three years, Mr Rimmington was extremely surprised and angered to hear that criminal proceedings were being instituted against him. He looks forward to being in a position to establish his innocence and clear his name and professional reputation at the earliest opportunity."