THE former treasurer and head of tax at supermarket giant Morrison has been jailed for insider trading by using privileged information on his employer’s online grocery deal with Ocado.

Paul Coyle, 50, was sent to prison for 12 months today after Leeds Crown Court heard he made £79,431 in profits buying and selling Ocado shares in early 2013 using the name and trading accounts of his partner.

During the three month period concerned Coyle was “at the heart” of the talks as Bradford-based Morrisons negotiated with Ocado over the development of its online business.

Laura Mackinnon, prosecuting, said discussions included the acquisition of warehouse facilities, the finance structure and tax implications and he signed documents indicating he knew the restrictions imposed by his “insider” status.

Coyle, a former Inland Revenue inspector, initially bought 24,895 Ocado shares prior to 14 March, 2013 when an announcement was made the two were in discussion.

He sold them the day after the announcement making just over £8,000.

The father-of-four then continued to abuse his position by buying and selling a further 100,000 shares as the company share price fluctuated amid market speculation. During that period he sold some shares banking a further £11,000.

On May 17, 2013 after an official announcement was made that the two firms had reached a formal agreement he sold the rest of his shares making £60,000. His partner of 28 years Emma Baker said she had no idea he had used her name.

Jailing Coyle, Mr Justice Globe said while he accepted his remorse was genuine, his offending was so serious there had to be an immediate jail term.

“You came into possession of that information by your senior position within the organisation. Your breach of trust was significant.”

“Whatever your real motivation was, your actions were deliberate and in my judgment dishonest. You knew at the time what you were doing was illegal. Your actions continued over a three month period and involved a number of individual trades.”

The judge told him: “Insider dealing is not a victimless crime, harm has been caused by your actions, it has an impact on the overall public confidence in the integrity of the market.”

Coyle, of Warwick Crescent, Harrogate, admitted two charges of insider dealing and was also ordered to pay £15,000 costs.

The judge ruled his benefit from crime was £203,234 made up of share value and profits and ruled he should pay that figure under a confiscation order within two months or face a further two and a half years in prison in default.