Title: Co Antrim Man Faces 18-Month Sentence for Insider Trading in Irish Company Open Orphan

Background

A Co Antrim man, Declan Service (63), is awaiting sentencing for insider trading in Irish company Open Orphan plc, marking the first such conviction under the European Union (Market Abuse) Regulations 2016 and the Companies Act 2014.

Offense and Sentencing

Service, a carer for vulnerable people with a history of mental health issues, is facing an 18-month sentence for insider trading. Judge Elma Sheahan expressed consideration for this sentence, pending a review on February 19, 2023.Service is required to pay an equivalent of €69,310 (£60,000) to fund the fine before sentencing.

Alleged Offense and Proceeds

At the Dublin Circuit Court, Prosecuting for the Director of Public Prosecutions, Fionnuala O’Sullivan stated that Service had reportedly been “gambling” with his pension fund when he made the decision to trade using insider knowledge. The alleged offense took place in May 2020, when Service, as a substantial shareholder, received confidential information about the company’s plan to issue discounted shares. He acted on this information by selling his existing shareholding and purchasing the new shares at a discount before they were publicly announced.

Service’s shares in Open Orphan were valued at approximately £566,000 at the time of the illegal trades. Having gained insider information, Service contacted his broker to sell all his shares, and within days made a new investment using the proceeds, gaining a profit of £11,500.

Investigation and Arrest

The investigation revealed Service had made the trades through Goodbody Stockbrokers, with recorded calls. Goodbody’s compliance officer, after raising concerns, reported the suspicious transaction to the Central Bank of Ireland, who subsequently contacted the gardai. Servicing voluntarily presented himself at Irishtown Garda station in September 2022, confessing his actions.

Defense Arguments

Defense solicitor Brian Gageby argued for leniency, stating that the proceeds came from Service’s pension fund and that his client had not realized the illegality of his acts.Gageby also acknowledged his client’s mental health struggles, divorce proceedings, and history of volunteer work for Cabinteely Football Club.

Conclusion

Despite Service’s lack of past convictions, Judge Sheahan expressed concern, commenting on the severity and potential impact of the offense. The court hearing concluded with a plea for the public to report any suspicions of insider trading to gardai or financial institutions.

Heading and Subheadings

1. Title
2. Background
   • Awaiting sentencing for insider trading
   • First conviction under EU (Market Abuse) Regulations 2016 and Companies Act 2014
3. Offense and Sentencing
   • Consideration for 18-month sentence
   • Fine payment requirement
4. Alleged Offense and Proceeds
   • Gambling with pension fund
   • Confidential information
   • Gained profit of £11,500
5. Investigation and Arrest
   • Reported to Central Bank of Ireland
   • Voluntary confession at Irishtown Garda station
6. Defense Arguments
   • Leniency plea
   • Mental health struggles
   • Lack of past convictions
7. Conclusion
   • Judge’s concern for the severity of the offense
   • Call to report suspicions of insider trading