(MENAFN- Khaleej Times) An executive director of a brokerage firm has been referred by the Abu Dhabi Finance Public Prosecution to court to stand trial for allegedly abusing office.
The accused was said to have misused stock information of the brokerage company's customers in trading in the stocks for his private gains. The Abu Dhabi Finance Public Prosecution (ADFPP) earlier received a complaint from the Commodities and Securities Authorities (SCA) that blamed the wrongdoer for manipulating stocks. The investigation conducted by the ADFPP showed phone recordings assured that the accused had previous information about stocks trading made by the brokerage company's investors.
An official source at the Abu Dhabi Attorney General's office manifested that the suspect used to monitor and keep an eye on the big deals in stocks that a number of investors were to trade on. Based on the information, the accused would then purchase and sell stocks in great quantities for his private needs, illegally.
"The law bans using undisclosed information that one obtains thanks to one's post," the source added. "The federal law governing the Securities and Commodities Authority prohibits misusing of the officially unrevealed financial information on stocks, which might affect securities price in the stock market.
The source cited the pertinent law which punishes anybody who deals in securities based on undisclosed information he or she may know somehow previously through one's post, with a jail term up to three months and a fine starting at Dh100,000 going up to Dh1 million, or with one of the said penalties.
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