A solicitor was jailed this week at the climax of the Financial Services Authority’s first criminal prosecution for insider dealing.

Christopher McQuoid, 40, former general counsel at TTP Communications, and his father-in-law, James Melbourne, 74, were both found guilty of one count of insider dealing. At Southwark Crown Court on Monday, Judge Peter Testar sentenced both men to eight months in prison, with Melbourne’s sentence suspended for 12 months.

McQuoid was found to have passed confidential information to Melbourne before TTP’s takeover by US mobile phone company Motorola in May 2006. Melbourne bought TTP shares two days before Motorola’s offer was made public, netting him £48,919, half of which he gave to McQuoid. Both men had pleaded not guilty.

Margaret Cole, director of enforcement at the FSA, said: ‘The FSA has shown that we will take tough action to achieve our aim of credible deterrence in the financial markets. Anyone engaged in similar acts should see this as a clear warning.’

The FSA intends to prosecute a further three alleged insider dealing cases.