Insider crime jumps, convictions slump

Reported cases of insider share dealing and stockmarket manipulation have jumped in Sweden in the past five years, while the number of convictions has slumped, a new report shows.

In 2002, 16 cases of insider offences were reported to the Swedish Financial Supervisory Authority, a number which has risen to 131 so far this year.

The increase is being attributed to a change in Swedish law which encourages the financial markets to report cases of apparently irregular transactions to authorities.

Since 2002, only 9 percent of reported cases of insider dealing have led to prosecution.

The Swedish National Economic Crimes Bureau says the low prosecution rate in such cases is due to the difficulty in proving dealers have manipulated the market, or acted on information to which only a small number have access.