Norwegian Private Equity Firm Verdane: Two Employees Among 15 Suspects Arrested for Insider Trading

Oslo, Norway – In a statement released on Wednesday, the Oslo Police Department announced the arrest of 15 individuals, among whom are two employees of the Norwegian private equity firm Verdane, on suspicion of insider trading.

Arrested Individuals and Suspected Profits

The suspects, who have not been publicly identified, allegedly gained profits in excess of SEK 10m (EUR 868,000) through their insider trading activities, according to the police statement.

Motivations and Timeline

One of the accused, an employee at Verdane’s Oslo office, reportedly admitted that financial hardship was his motivation, sources close to the investigation revealed. The suspected insider trading activities are believed to have taken place between 2019 and 2021.

Focus of the Investigation

The Oslo-based private equity manager, which manages companies with a combined value of around NOK 75bn (EUR 6.6bn), came under scrutiny following reports of unusual trading activity in several of its portfolio companies, a source familiar with the probe revealed without disclosing further details.

The police statement did not specify which companies were involved in the suspected insider trading activities.

Verdane’s Response and Penalties

Verdane was not immediately available for comment. If found guilty, the suspects could face severe penalties, including fines and imprisonment, according to Norwegian law.

Ongoing Investigation and Previous Insider Trading Cases

The investigation is ongoing, and more information is expected to be released in the coming days. Insider trading, which involves buying or selling securities based on material, non-public information, is considered a breach of trust and a violation of securities laws in Norway and many other countries. It can lead to significant financial losses for investors and negatively impact market integrity.

Norway has previously taken a tough stance on insider trading, as evidenced by the 2019 case where the Norwegian Securities and Exchange Commission (OSL) fined two individuals a total of NOK 3.1m (EUR 298,000) for insider trading violations.

Background on Previous Insider Trading Cases in Norway

In 2017, a former executive of the Norwegian telecoms giant Telenor was sentenced to 18 months in prison for insider trading activities.

With the ongoing Verdane investigation, it is a reminder that the financial industry remains under close scrutiny, and those who seek to exploit non-public information for personal gain risk facing significant consequences.