Nordea Managing Director Faces Insider Dealing Prosecution

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A Swedish prosecutor has charged a managing director within Nordea Bank Abp’s leveraged finance unit with suspicion of severe insider trading.

“The criminal activity can be considered as severe as it has taken place systematically over several years, and due to the special position of the bank employee,” Pontus Hamilton, a prosecutor at the Swedish Economic Crime Authority, said in a statement.

The long-time Nordea employee at the bank’s Stockholm office was arrested on Feb. 11 following allegations he had leaked information obtained through his work to a friend. That person’s family then traded on the information, it is alleged.

The suspect’s appointed lawyer, Sofia Bjorksten, couldn’t immediately be reached for comment. Nordea spokeswoman Afroditi Kellberg told Bloomberg the bank welcomes the probe, and that it has “zelo-tolerance toward employees that overstep internal policies, laws and rules.”

The banker is suspected of having advised others to buy shares in Ahlstrom-Munksjo Oyj and Gunnebo AB prior to respective offers for the companies in September last year. The allegations also cover trading in Consilium AB around the time a business unit was sold to Nordic Capital in 2019. The trades go as far back as 2016, before Cloetta AB bought Candyking Holding AB.

The prosecutor says the Nordea banker was on the insider list in all of the cases, which means that he “to the highest degree” was involved in the transactions. He has requested that 2.5 million kronor ($286,000) should now be seized from the suspects.

The main hearing at Stockholm District Court starts April 13 and is expected to last four days. A total of six people face charges.

©2021 Bloomberg L.P.

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