Management consultant Rupinder Sidhu was found guilty of 22 counts of insider dealing and sentenced to two years in prison by a London court on Thursday.
The Financial Services Authority said Sidhu, with Anjam Ahmad, an ex-hedge fund trader and risk manager at AKO Capital, engaged in insider dealing in 18 UK and European shares between May and August of 2009.
Ahmad told his associate his trading plans, allowing Sidhu to place bets ahead of AKO making him a profit of around 524,000 pounds, the FSA said.
Sidhu embarked on a sophisticated scheme which was designed to enable him to profit from exploiting confidential price sensitive information, said Tracey McDermott, the acting director of enforcement and financial crime at the FSA.
You are greedy. Sheer greed is behind all these offences, said Judge Gledhill QC.
Sidhu was found not guilty of one other count of insider trading.
Ahmad was last year sentenced to a 10 month suspended prison term, and fined 50,000 pounds.
The former AKO trader avoided prison by cooperating with the FSA's effort to prosecute Sidhu.
The case is the sixth successful prosecution for insider dealing by the FSA, which has cracked down on the practice in the last two years. (ID:nLDE64I19M)
(Reporting by Yeganeh Torbati; Edited by David Jones and Jon Loades-Carter)