Microsoft reseller Bytes says more than 100 undisclosed share trades linked to ex-CEO

One of Micrsoft's largest cloud and tech licensing resellers, Bytes Technology Group (BTG), today gave the London Stock Exchange an update on the investigation surrounding the abrupt resignation of its CEO and an ongoing probe by the UK's Financial Conduct Authority (FCA). According to the filing, former chief exec Neil Murphy …

[Snake]

Training

"And it isn't just Murphy on the hook. There were also 15 additional transactions conducted on behalf of Murphy's wife, or so the filing claims."

I see. So the Murphys are gaining the experience they need to be politicians in the future, then?

[KittenHuffer]

Re: Training

Or sociopaths gotta sociopath!

[Paul Herber]

Re: Training

That's Murphy's Law for you.

[David 132]

Re: Training

I’m sure they’re not bitter.

(Obscure old advert reference there…)

[Korev]

Re: Training

Is that beer still "a thing"?

[Anonymous Coward]

Re: Training

Yep - but only as a brand owned by ghastly mega-brewers Heineken. Then again it's a stout, how can they ruin a beer that's already been ruined?

[Anonymous Coward]

Re: Training

I read this in the paper going home last night and actually dropped the paper because I was so surprised someone could be so flipping stupid. Not since Piers Morgan, see Press Complaints Commission etc. have I seen someone so obviously flouting the rule/law in such a flagrant manner.

[Pascal Monett]

"abruptly quit with immediate effect last month"

And he honestly thinks that that will be enough to get him off the hook ?

Or has he abruptly gone on vacation in a non-extradition country as well ?

Because if he hasn't, he'll be speaking with the judge in not too long, I think.

[Lurko]

Re: "abruptly quit with immediate effect last month"

I'd posit that he will be under no illusions that it'll get him off the hook, but by resigning he avoids the ignominy of being fired and can claim bonuses or other contractual entitlements (such as yet-to-vest share options), all or some of which might be void if he were fired for gross misconduct. He already knows he'll likely be fined by the FCA, and barred as a director for 4-10 years, and stands a good chance of a modest jail sentence. I'd guess the FCA will be keen to pursue it in court because insider dealing detection rates are very low, and conviction rates lower still, despite indications that the activity is pretty common.

A few weeks back a Goldman analyst got twenty two months porridge for fraud and insider dealing, although the convict's brother was acquitted despite being party to the scheme. At least that's somebody to go and visit him.

[Anonymous Coward]

Re: "abruptly quit with immediate effect last month"

I know someone who was CEO somwhere and they had a disrepute clause in their and other board members contracts. If your actions whilst employed by the company are deemed to have brought that company into disrepute or would have a serious negative impact on the company’s image then you’re toast. So massive insider trading would totally qualify you under those fules. How badly burned you get depends on how bad the damage is but they can claw back bonuses, share options etc. That includes after you have left the firm, so just resigning won’t do any good there.

[Anonymous Coward]

Re: "abruptly quit with immediate effect last month"

Fair enough, but bear in mind that isn't the case with all directors' contracts, and not all contractual clauses have that post-employment reach.

But clearly anyone who indulges in insider trading does on the normal understanding of the City, that lots of other people do it and get away with it*, so I will too.

* Rough numbers, 20% of takeovers are immediately preceded by an otherwise unwarranted share price increase, 70% of profit warnings are preceded by an otherwise unwarranted price dip. A suitable search will readily bring up the sources and discussion. FCA undertake about 60-80 insider trading investigations each year, but convictions run (at their highest) at low single digits per year, and in many years there's none. With around 150m trades annually on LSE (ignoring derivatives and other markets), how lucky we are that all traders are so honest and law abiding.

[_Elvi_]

I hear the weather in..

North Korea is nice this month ..