Eight arrests in FSA insider dealing crackdown

This morning’s operation involved 40 FSA staff, assisted by officers from City of London Police, the regulator says. The operation is part of the FSA’s ongoing investigation into market abuse, which began in 2006 after the regulator said almost a third of large takeover deals showed signs of possible insider trading. Its most recent success was the prosecution of John Shevlin, a Body Shop IT technician, who claimed he had shorted Body Shop because he thought the stock looked expensive. It turned out he had in fact hacked into the company's computer system where he discovered that a profit...