West Brothers Sentenced for Insider Trading & Ordered to Repay £280,000

The Financial Conduct Authority (FCA) has secured the sentencing of Matthew and Nikolas West for insider dealing, with the brothers ordered to pay more than £280,000 under confiscation orders.

Matthew West, 44, of Berkhamsted, Hertfordshire, received a 15-month custodial sentence suspended for two years, together with 200 hours of unpaid work. His brother, Nikolas West, 46, now based in Dubai, was given a six-month custodial sentence suspended for 12 months.

Both men were seasoned traders with over two decades of experience and extensive contacts across the UK and international investment community. The FCA uncovered their market abuse through surveillance tools designed to detect suspicious trading patterns. Investigators found that within minutes of receiving confidential broker communications, Matthew West unlawfully disclosed the information to his brother, enabling the pair to coordinate trades that generated £44,164 in profits.

The confiscation orders far exceed the profit made, as they reflect the full value of the shares traded through the illegal activity, adjusted for inflation. Matthew West was ordered to repay £181,615, while Nikolas West was ordered to repay £102,150. Both must pay within 14 days or face further prison terms.

Steve Smart, executive director of enforcement and market oversight at the FCA, commented:

Greed got the better of them. The West brothers knew the rules and still chose to break the law. This should serve as a reminder that the FCA will take action against those who abuse their position and break the law – including depriving them of their ill-gotten gains.

His Honour Judge Christopher Hehir, in sentencing, underlined the damage caused to financial markets by insider trading, stating:

Markets cannot operate fairly if they are rigged by dishonest operators. Grave economic harm may result, so deterrence is important.

The case revealed how Matthew West, often approached by brokers through legitimate ‘wall crossing’ arrangements, breached confidentiality agreements by passing on sensitive information about upcoming capital raises on AIM-listed companies. The brothers exchanged detailed messages and executed trades ahead of public announcements.

The convictions form part of the FCA’s ongoing crackdown on insider trading and follow recent cases including the prosecution of Redinel and Oerta Korfuzi. They reinforce the regulator’s determination to protect market integrity and deter financial crime.

Read the press release here.