London J.P. Morgan Banker Fined for Insider Trading

In its statement, the FSA said Hannam had disclosed inside information on Heritage Oil, a client of his, which had mandated J.P. Morgan in 2007 to secure a “substantial” corporate transaction. The information was contained in two emails sent in September and October 2008. One message provided information about a potential offer for Heritage; the other disclosed a new oil find. Both pieces of data had the potential to move markets.

The first email, sent to an individual identified as Mr. A by the FSA, said in part about takeover talks, “I believe that the offer will come in the current difficult market conditions at 3.50-4.00 pounds per share. I am not trying to force your hand, just wanted to make you aware of what is happening.” Mr. A was supposed to be working with an organization that was interested in investing in Kurdistan, where Heritage was working.

A separate e-mail provided information to both Mr. A and another individual also with interests in Kurdistan, referred to as Mr. B. Hannam told them, “Tony [Heritage CEO Tony Buckingham] has just found oil and it is looking good.”

Hannam, who said he had cooperated fully with the FSA, had said that the information was too general to be inside information, and that Buckingham had already advised Mr. A about it.