Blue Index Founder’s Insider Gains Used on Wine, Clothes

The founder of Blue Index Ltd. received the longest-ever U.K. insider-trading sentence after prosecutors said he spent the proceeds of the crime on a 35,000-pound ($55,000) wine cellar and other luxuries.

James Sanders, who was sentenced by a judge in London today to four years in prison, set aside 100,000 pounds for a “car fund” and 50,000 pounds for a watch, clothes, a holiday and wine, according to his handwritten notes released by the Financial Services Authority. Profits generated by the illegal trades for Sanders, his wife and another owner of the now-defunct Blue Index totaled 1.9 million pounds over three years.