Electrolux employee admits to insider trading

The prosecutor in an ongoing insider trading case has announced that an Electrolux employee has admitted to having had advance knowledge of the company's end of year accounts.

He also confessed to having been in contact with one of the main suspects, a 34-year-old employee of risk capital company Cevian.

In a separate development on Wednesday, the Cevian employee was remanded in custody by Stockholm Court of Appeal. The district court had previously allowed the man to remain free. District prosecutor Robert Engstedt said there was a risk that the man would try to conceal evidence if he was not detained. He also argued that he could attempt to flee justice. The accused man argued against the application for him to be detained, but the court found in favour of prosecutors.

Engstedt suspects the Electrolux employee of leaking information about the company’s impressive accounts to the employee of Cevian, enabling the latter to profit from shares bought on the strength of this insider knowledge.

According to Dagens Nyheter, the pair know each other well and have been in regular contact.

At least one further man, a 35-year-old employee of Nordea bank, is suspected of involvement in the affair. Detention proceedings held last Thursday led to him being detained in police custody.

The current insider trading scandal is described as the largest of its kind ever discovered in Sweden.