Consultant Exploits Access to Oil Exploration Results for Insider Trading, Faces FCA Fine of £300K

The UK Financial Conduct Authority (FCA) has fined Russel Gerrity, an oil rig consultant, £309,843 after finding he used inside information to profit from trading shares in oil and gas companies. Gerrity made £128,765 in unlawful gains between October 2018 and January 2022.

As a consultant, Gerrity had access to confidential information about drilling results. He bought shares in Chariot Oil & Gas Limited and Eco (Atlantic) Oil and Gas Plc ahead of favorable announcements, profiting when prices rose.

On another occasion, he sold shares before an unfavorable announcement that no oil or gas had been found, avoiding losses when prices fell.

Gerrity’s trading was first flagged through Suspicious Transaction and Order Reports (STORs) submitted by a firm, highlighting the industry’s role in detecting market abuse.

The FCA’s own monitoring systems later identified additional suspicious trades across his multiple accounts with brokers, even while Gerrity was outside the UK.

Gerrity agreed to settle the case, qualifying for a 30% discount under FCA procedures. Without the discount, the fine would have been £387,448.

Steve Smart, FCA Executive Director of Enforcement and Market Oversight, said: “Mr Gerrity abused his position to line his own pockets. We will take action against those who damage the integrity of our markets, and seek to recover any ill-gotten gains.”

In a separate insider trading case, the FCA fined investment adviser Neil Sedgwick Dwane £100,281 and imposed a permanent ban from financial services.