Julian Rifat, a former trader at U.S. hedge fund Moore Capital, WAS handed 19 months in prison and six-figure fine for abusing sensitive market information and colluding to make illicit profits

Julian Rifat and accomplice Graeme Shelley, a former broker at Novum Securities, made more than £285,000 trading on corporate capital raisings before they happened.

Mr Shelley would bank the profits from spread bet and contract for difference trades, and split them with Mr Rifat, including buying him a £50,000 Range Rover and a £15,000 holiday to Oman.

The Financial Conduct Authority, which investigated the case, said Mr Rifat, 45, “knew the rules, but abused them for his own benefit”.

The sentencing puts an end to one chapter of a lengthy and painstaking investigation from the FCA and its predecessor, the Financial Services Authority.

“Operation Tabernula” has secured 27 convictions and recovered almost £50m from traders who unscrupulously traded on insider information.

One part of the operation, known as “Aldershot”, has focused on the activities of three men:

1. Mr Shelley = Mr Shelley avoided jail last year, receiving a two-year suspended sentence,
2. Paul Milsom, a former trader at Legal & General. = Mr Milsom was given two years in 2013.
3. Mr Rifat, = Mr Rifat was one of the most high profile people pursued by the FSA.

Mr Rifat

1. was arrested five years ago and plead guilty in November. On Thursday, he was given a £100,000 fine and ordered to pay legal costs of £159,402.
2. he was given a shorter sentence because of his plea, and for “significant personal mitigation”.
3. Georgina Philippou, the FCA’s acting director of enforcement and market oversight said
   1. “Mr Rifat was a very experienced market professional.
   2. He was privy to highly sensitive information at the heart of some of the largest transactions in the UK financial markets during the latter half of 2009,”.
   3. “Mr Rifat’s behaviour exploited financial markets during a particularly challenging time just as they were taking steps to recover from the 2008 crisis.
   4. The smooth running of our financial markets requires market professionals to play by the rules –
   5. Mr Rifat knew the rules, but he abused them for his own benefit.”

Seven other individuals are still being prosecuted by the FCA.

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