'Insider' lawyer and father-in-law face jail

A City solicitor and his father-in-law were today found guilty of insider trading, and face up to seven years in jail.

Christopher McQuoid and James Melbourne made an illegal profit of almost £49,000 by trading shares in TTP Communications ahead of a takeover by Motorola in 2006.

McQuoid, TTP's general counsel, told his father-in-law about the deal two days before it was made public. Melbourne, who had never bought TTP shares before, snapped up 154,000 of the stock at 13p.

The deal was priced at 45p, after which Melbourne wrote a cheque to McQuoid for half the profit. Financial Services Authority director of enforcement Margaret Cole said: "McQuoid took advantage of the trust placed in him, and with his father-in-law has been found guilty of cheating the market".

It is the first successful criminal prosecution brought by the FSA for the crime of insider trading. At least three other cases are pending.

Gerallt Owen, McQuoid's lawyer, said: "We are very disappointed with the jury's majority verdict and are actively considering and anticipating submitting an appeal."