A FORMER chief executive and joint managing director of an East Lancashire company has been convicted of insider share dealing, along with his brother.

Gerard Cahill, who worked for more than 37 years at Gaskell plc pleaded guilty to one offence of insider dealing while his brother John Cahill admitted three offences.

Hyndburn magistrates were told that in November 1997 profits at the company had been higher than expected so the board of directors decided that a trade statement should be made public before there was any dealing in its shares.

But the brothers were able to buy shares in the company and Gerard Cahill made £3,400 while John Cahill's profit was £6,050. Gerard Cahill was fined £3,000 with £3,096 costs and John Cahill was fined £2,000 with £3,036 costs

The company said in a statement: "We are saddened to hear the outcome of the case in view of Gerard Cahill's excellent service over a period of 37 years.

"He resigned from the main board on September 1 1999 and later in the same year relinquished all employment with Gaskell plc."