Five charged with insider trading

Five people have been brought before Stockholm district court in connection with a major insider dealing affair. Three of them have been charged with serious insider trading.

The accused are said to have bought shares in the technology firm CTT Systems just before the company announced a multi-billion kronor order from Boeing, reported Dagens Industri.

The order, which was estimated to be worth 1.9 billion kronor, was received by CTT Systems in August 2005 and prompted the company’s shares to rise by 203 percent.

But details of the affair leaked out in advance. According to prosecutor Stig Åström at the Swedish National Economic Crimes Bureau a close colleague of CTT Systems’ chairman told his son about the agreement. A few days later the son bought 26,000 shares in CTT and made an overnight profit of almost a million kronor.

Another family member, an acquaintance of the son and one other person are also said to have bought shares and made scoops of between 44,000 and 930,000 kronor.

All of those accused deny the charges.

A number of them have been linked with Malmö-based investment company Volito. Two of those facing prosecution worked at the company, according to a press release.

Volito’s managing director Sven Holmgren was first contacted by the Swedish National Economic Crimes Bureau in February.

“Obviously I reacted with dismay. We had an internal discussion and did what we had to do in agreement with the people concerned. Two people were let go from their jobs. The company is now working as usual,” he said.