NRI journalist, Anil Bhoyru
found guilty for manipulating the stock market
Bhoyrul
spared jail over ramping
Telegraph,
London, Jan 21, 2005
By Russell Hotten (Filed: 21/01/2006)
Former Daily Mirror financial journalist Anil Bhoyrul
escaped jail yesterday when a judge ordered him to
perform 180 hours of community service as punishment
for his role in the "City Slickers" share-ramping
scandal.
Anil Bhoyrul leaves St Albans Crown Court yesterday
The sentencing of Bhoyrul's ex-colleague, James Hipwell,
was deferred pending medical reports, but Mr Justice
Beaston told him that his offence was so "serious
that only a custodial sentence can be justified".
A third man, private investor Terry Shepherd, who
conspired with the journalists, was sentenced to three
months in prison, though the judge told him he will
only have to serve half of that.
Bhoyrul, 38, and Hipwell, 39, made thousands of pounds
in 1999 and 2000 by buying shares, tipping them in
their Slickers newspaper column, and selling when
the price rose. Prosecutors cited 44 instances of
share ramping, often using inaccurate information.
Later they were joined by Shepherd, 38, who leaked
their tips on the internet.
After a four-year investigation by the Department
of Trade and Industry the three were charged under
the Financial Services Act with conspiring to create
a misleading impression as to the value of shares.
The judge said he had taken into account the length
of time the case had taken to come to trial, and also
the fact that the Daily Mirror had "no formal
code of conduct for the journalists" and that
"there was no guidance from your superiors".
Bhoyrul appeared delighted and said that he now wanted
to put it all behind him. In a statement via his solicitor,
Bhoyrul denied that he had intended to "deliberately
mislead" the public and insisted his share dealing
had always been "transparent".
He now works in Dubai as a magazine editor and his
lawyers hope the community service can be done consecutively
over a few weeks so that he can quickly return to
his job.
The judge directed him to pay back the £14,800
he made from the tipping scam within six months or
face nine months in jail. The judge told Bhoyrul he
deserved credit for having pleaded guilty, prompting
the sentence of "unpaid work for the benefit
of the community".
Hipwell, who made about £41,000 from the scam,
pleaded not guilty, which will weigh heavily when
the judge comes to decide on a possible custodial
sentence. The journalist, who received a kidney transplant,
provided medical evidence that his health was deteriorating
and that he may have to go back on dialysis. He returns
to hospital for tests next week and a report will
be given to the judge.
The judge told Shepherd, 36, who pleaded not guilty,
that he had no alternative but to give him a custodial
sentence. "You may have come into it [the scam]
by accident but you then became really enthusiastic,
telephoning the Slickers regularly for information
about the pending tips."
Martin Saunders, a litigation partner at Clifford
Chance, said yesterday that people should not regard
community service as a light sentence, saying it is
"intended to send a serious signal."
