April 8, 2024

FCA announces the conviction of senior RPC Group staff member for insider dealing

The UK Financial Conduct Authority recently announced that Stuart Bayes, who worked as a site manager for UK plastic manufacturer RPC Group Plc, was found guilty of two offences of insider dealing.  Bayes is currently scheduled to be sentenced on April, 26, 2024 in the Southwark Crown Court.

According to the FCA, Bayes learned of RPC’s plan to acquire British Polythene Industries (“BPI”) while employed with RPC.  Before the planned acquisition was announced publicly, Bayes allegedly traded aggressively in BPI shares and reportedly shared the inside information with Jonathan Swann, who he encouraged to trade in BPI securities before the announcement.  Bayes allegedly closed his position on June 9, 2016 just after the announcement and realized a profit of more than £132,000 ($167,000).

The FCA charged Bayes with 3 counts of insider dealing, including one count of dealing and two alternative counts related to either his disclosure of inside information to Swann or his efforts to encourage Swann to deal while in possession of inside information.  While Swann was charged with one count of insider dealing, the jury found him not guilty of the offense.

This was the FCA’s second attempt to convict Bayes of insider dealing.  According to the FCA, its first trial in 2022 ended in a mistrial when the jury failed to reach a verdict in the case.

FCA Press Release