In February 2025, the Financial Conduct Authority (FCA) secured a confiscation order of £586,711.01 against a former Goldman Sachs analyst (Mohammed Zina) convicted of insider trading. This order amounts to Mr Zina’s available assets and must be paid within 3 months, or Mr Zina will face a further 5 years in prison.
What Happened?
Mr Zina worked for Goldman Sachs between the years of 2014 and 2017, joining its Conflicts Resolutions Group in 2016. It was in this role that he came into the possession of insider information relating to potential mergers and acquisitions the Firm was advising on.
Mr Zina dealt in 6 shareholdings in total using this inside information between 15th July 2016 and 4th December 2017: Arm Holdings plc, Alternative Networks plc, Punch Taverns plc, Shawbrook plc, HSN Inc and Snyder’s Lance Inc. The trading was partially funded by three loans, fraudulently obtained from Tesco Bank, totalling £95,000.
The total profit Mr Zina made from trading in these 6 stocks was approximately £140,486, however the total benefit he amassed across all his offences including fraud amounted to £1,091,424.72, when adjusted for inflation.
The Outcome
On 15th February at 10am, after a 12-week trial at Southwark Crown Court, Mr Zina was sentenced to 22 months in prison for a combination of insider dealing and fraud. The jury voted unanimously for all 9 counts of insider trading and fraud. Upon sentencing Mr Zina, His Honour Judge Baumgartner, Recorder of Westminster said: ‘You were under no illusion as to the importance of confidentiality. You betrayed that trust and cheated honest traders. This strikes at the heart of financial markets and the trust the public places in them.’
Mr Zina’s brother was also investigated for fraud and bribery however was acquitted of all counts against him after the fraud charges were discontinued and there was insufficient evidence in relation to the insider dealing counts.
Therese Chambers, the Joint Executive Director of Enforcement and Market Oversight at the FCA commented that ‘Insider dealing harms the integrity of our markets. As well as prosecuting insider dealers, we will not allow them to keep any part of their illicit profits. We have confiscated the entirety of Mr Zina’s assets, demonstrating that crime does not pay.’
Mr Zina’s case is one of the biggest anti-money laundering and fraud cases in recent years and the FCA’s response to these allegations and convictions show they are serious about maintaining the integrity of UK markets.
How can Complyport help?
Complyport can help protect you and your firm by providing training and support to all members of staff regarding anti-money laundering and fraud as well as providing ongoing support to help your firm understand the FCA’s expectations (SYSC 6.3) and ensure that your firm remains compliant as regulations evolve. We also review your internal controls through compliance and financial crime audit to ensure that your firm is best placed to prevent financial crime.
