Police and the prosecutor suspect that the banker disclosed insider information about the merger of Lemminkäinen and YIT to his father and spouse. The chief and a close circle have denied guilty of the crime.
Danske A chief banker who worked at the bank has been charged with misuse of inside information. At the same time, his father and wife were prosecuted.
According to Helsingin Sanomat, this is insider information related to the listed company Lemminkäinen in 2017. When the listed companies Lemminkäinen and YIT announced the merger in June 2017, Lemminkäinen ‘s share price rose by 43 percent per day.
The police and the prosecutor suspected the banker had disclosed inside information about the merger to his father and spouse before the companies had disclosed the case. The banker’s related parties bought Lemminkäinen’s shares after the banker was included in the companies’ project-specific insider list.
When Lemminkäinen’s share price rose, the banker’s father and spouse calculated a capital gain of tens of percent. All the suspects have denied guilty of misusing inside information during a police interrogation.
Insider information the misuse may be subject to a judgment in the case of information relating to the value of a listed company’s share. The verdict comes if you use inside information to your advantage or tell others about it.
The offense is punishable by a fine or imprisonment for a maximum of two years.
The misuse of insider information is rarely discussed in court in Finland. It is even rarer that a person on the project-specific insider list is prosecuted.
Prosecutor At the end of 2021, YIT also decided not to prosecute YIT ‘s Business Area Director and his father. The business area director was entered in the insider list for Lemminkäinen’s and YIT’s merger project.
The father of the division manager had bought Lemminkäinen’s shares for just under EUR 5,000 after his son had learned of the major merger in the construction industry.
However, the prosecutor considered that the father’s purchases were normal in his investment history and that there was no evidence that insider information was transferred from the divisional director to his father. The mere relationship and the date on which the father’s shares were acquired were not sufficient to justify prosecution.
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