A British broker of contracts for difference (CFDs) has been sentenced to jail time for insider trading on tips that originated with a U.S. accounting industry executive.

The UK’s Financial Services Authority announced today that James Sanders, a director of Blue Index, a CFD brokerage, his wife, Miranda Sanders, and James Swallow, a co-director of Blue Index, have each been sentenced for insider dealing. Sanders was sentenced to four years in custody and disqualified as a director for five years; his wife and Swallow both received 10 months.

Sanders had previously pleaded guilty to a total of 10 charges of insider dealing, his wife and Swallow pleaded guilty to five and three charges, respectively. According to the FSA, the Sanders received insider tips on pending merger and acquisition deals from Arnold McClellan, a senior partner at Deloitte Tax LLP in San Francisco, or his wife, Annabel McClellan, who is Miranda Sanders sister.

They then traded on that information and encouraged clients of Blue Index to trade on it too. The FSA reports that their total profit on the insider trades was approximately £1.9 million, and Blue Index clients made profits of approximately £10.2 million.

“This case is significant as it involved a parallel investigation by the US Securities and Exchange Commission (SEC) and US Department of Justice (DoJ), together with the Federal Bureau of Investigation,” notes the FSA.

In October 2011, Annabel McClellan settled with the SEC agreeing to a $1 million fine, without admitting or denying the allegations, and is serving an 11-month prison sentence after pleading guilty to a charge brought by the DoJ. The SEC dismissed the charges against her husband.

“This was a case of systematic abuse by approved people of their privileged position in the market – we are determined to stamp out such abuse. Our tough, coordinated approach to insider dealing and our commitment to taking on difficult criminal prosecutions has really begun to pay off,” said Tracey McDermott, acting director of enforcement and financial crime division of the FSA.