Old School Insider Trading Never Really Goes Away; Three Recent Cases
Despite extensive compliance training, policies, and certifications, these three cases prove that personal greed continues to drive insider trading schemes—and that sophisticated surveillance tools will ultimately catch perpetrators, no matter how clever they think they are.
Case 1: The FCA Sibling Conspiracy (UK, 2025)
The Players: Research analyst Redinel Korfuzi and his sister Oerta Korfuzi
The Scheme: Between December 2019 and March 2021, Redinel used his position at an asset management firm to obtain confidential information about 13 publicly traded companies. He conspired with his sister to trade on this inside information using CFDs (Contracts for Difference), routing trades through accounts held by his sister, personal trainer, and partner to conceal his involvement.
The Downfall: The FCA’s market monitoring systems detected the suspicious trading patterns despite their elaborate concealment efforts.
The Consequences: Both siblings were convicted of insider dealing and money laundering (involving £198,210 in unrelated dirty cash deposits). They netted over £1 million from their scheme but now face up to 7 years for insider dealing and 14 years for money laundering.
The Lesson: This case highlights the effectiveness of modern surveillance tools in uncovering even well-hidden schemes. It demonstrates that using multiple accounts and complex financial instruments will not outsmart sophisticated monitoring capabilities.
Case 2: The Federal Reserve Banking Supervisor (US, 2025)
The Player: Robert Brian Thompson, banking supervisor at the Federal Reserve Bank of Richmond
The Scheme: In October 2023, Thompson previewed a positive earnings announcement from a bank under his supervision and bought $678,000 worth of stock hours before the announcement. In January 2024, he learned about massive loan losses at another supervised bank and purchased put options two days before the disclosure.
The Downfall: SEC investigation uncovered his trades tied directly to his supervisory access to confidential information.
The Consequences: Thompson earned $584,873 in ill-gotten profits but was sentenced to 24 months in prison and ordered to pay full disgorgement plus interest. His position of trust as a federal banking regulator made his betrayal particularly egregious.
The Lesson: This case underscores that no position, even one in a federal regulatory body, is exempt from surveillance and accountability. It’s a crucial reminder that personal gain from privileged information, no matter how clever the trade, will be met with severe consequences.
Case 3: The Senior Investment Banker Under Investigation (US, 2025)
The Player: Jason Satsky, former global head of power, utilities and energy infrastructure investment banking at Bank of America
The Scheme: Under DOJ investigation for allegedly leaking confidential information about South Jersey Industries’ $8 billion acquisition by Infrastructure Investments Fund (backed by JPMorgan) in 2022. The stock soared 40% when the deal was announced.
The Current Status: Investigation ongoing for over a year. Satsky was placed on leave when the bank learned of the probe and later dismissed during job cuts. No charges filed yet, but the case highlights how even senior bankers with decades of experience and legal training aren’t immune to temptation.
The Unusual Aspect: Unlike typical investigations that culminate quickly in charges, this probe has unfolded gradually, demonstrating law enforcement’s patience in building complex cases against high-level targets.
The Lesson: This case demonstrates that an investigation can linger for an extended period, creating significant professional and personal turmoil even before any charges are filed. It also shows that the risks of insider trading extend not just to the individuals involved but also to the reputation of their firm, leading to immediate career-ending consequences.
The Common Thread
All three cases reinforce the opening paragraph’s key message: no amount of training, policies, or experience can eliminate the human element of greed. However, they also prove that modern surveillance systems, investigative techniques, and regulatory cooperation make detection increasingly likely. The old adage “trust, but verify” remains the compliance officer’s best defense against insider trading schemes.
At StarCompliance (Star), our clients harness advanced algorithms and real-time market data to automatically correlate firm, customer, and employee trades with breaking news and material nonpublic information – spotting suspicious patterns before they escalate. By combining powerful case-management workflows and customizable surveillance reports, compliance teams gain the proactive edge they need to uncover bad actors and protect their firm’s reputation.
Interested in learning more about Star’s full suite of Employee Compliance Solutions? Schedule a complimentary demo here.
Best Practices Guide: Detecting Insider Trading
