On 26 November 2010, after a trial, Rollins was found guilty of five counts of insider dealing and four counts of money laundering after he traded on the basis of information he obtained as a result of his senior position and laundered the proceeds.
Based on his knowledge of the company’s worsening financial position he sold his entire shareholding in PM Group. This took place in August and September 2006. Rollins realized £173,875 from the sale of his shares.
When information about the company’s worsening financial position was announced to the market the share price fell immediately by 17% and then continued to fall over a two week period so that by selling his shares when he did he avoided substantial losses.
When Rollins became aware of the Financial Services Authority’s (FSA’s) interest in his dealing he laundered the proceeds to try to hide his conduct. He did this by transferring the proceeds of his crime into accounts that he had set up in the name of his father, David Rollins.
In passing sentence the presiding judge said:
“You sold when you knew it was folly to buy. Every pound you saved was a pound someone else spent […] by selling early you broke the trust of your employer [and] you broke the trust owed to the market”
Margaret Cole, managing director of enforcement and financial crime at the FSA, said:
"By pursuing a criminal prosecution in this case, the FSA has shown that it will take tough action against those who abuse positions of trust by dealing on the basis of inside information. Rollins’ crime was aggravated by the fact that he sought to hide his conduct from the FSA by laundering the proceeds.
"The guilty verdicts and sentence in this case send a message, loud and clear, that insider dealing and money laundering are serious crimes."
