The former treasurer and head of tax at Morrisons supermarkets has been jailed over a £79,000 insider dealing fraud linked to the company’s involvement with online grocer Ocado.

Paul Coyle, 50, was sent to prison for 12 months at Leeds Crown Court today (3 March) after pleading guilty to two offences of insider trading.

Coyle, from Harrogate, bought and sold shares in Ocado during a three-month period when the company was in talks with Morrisons over the development of the Yorkshire supermarket giant’s online grocery business, the Yorkshire Post reported.

Coyle, a former Inland Revenue tax inspector, was a central figure during the negotiations, and signed an agreement in January 2013 which prohibited him from trading in Ocado or Morrisons shares, the court heard.

According to the Post, the father-of-four used his partner’s trading accounts to buy Ocado shares ahead of an official announcement, on 14 March 2013, that the two companies were engaged in talks.

The court heard that Coyle continued to abuse his position and bought and sold more shares as the company share price fluctuated amid market speculation.

Coyle then sold his shares after an official announcement was made that the two firms had reached a formal agreement, the Post reported, making a profit of £60,000.

Coyle’s partner of 28 years, Emma Baker, was interviewed by the Financial Conduct Authority after the deception came to light and said she was unaware of him trading in Ocado shares.

Neil Hawes, mitigating, said Coyle was still unable to explain why he had committed the offences. He added: “He is struggling to come to terms with what he has done.

“He cannot resolve why he committed the offence. It is a question that he cannot answer.”

Coyle became head of tax at Morrisons in 2005.

He was ordered to pay £203,234 under the Proceeds of Crime Act or face a further period of imprisonment. The figure relates to the value of the shares plus the profits made on them. Coyle was also ordered to pay £15,000 court costs.

Topics