Former Cazenove partner guilty of insider dealing
Share
Malcolm Calvert, a former equities marketmaker at stock broker Cazenove has been found guilty on five counts of insider dealing at Southwark Crown Court today.
Calvert made approximately £103,883 profit from the trades that took place between June 2003 and October 2004.
The case is the third successful prosecution for insider dealing bought by the FSA. It says it is part of its ongoing drive to tackle market abuse and promote efficient, orderly and fair markets.
The full sentencing and confiscation hearing will take place tomorrow.
The FSA says the prosecution involved a key witness and friend of Calvert, Bertie Hatcher, who has been fined £56,098 for market abuse.
Hatcher provided evidence in the trial having been involved in the illicit dealings and the FSA has published details of the agreement it made with him which led to his assistance in the prosecution of Calvert.
The FSA found that between 2003 and 2005 Hatcher had profited from inside information, using it to buy and sell about 420,000 shares in six companies. The fine represents the full disgorgement of his share of the net profit from these trades.
Director of enforcement and financial crime Margaret Cole says: “This is another milestone in our fight against market abuse. It is a misconception that insider dealing is a victimless crime. It damages the very confidence and trust our markets operate on and it must be stopped.
“The guilty verdict is a shot across the bow for any city workers who may be tempted to trade using insider knowledge. Our message is simple, if you take part in such activity, you run a very real risk of the FSA taking criminal action against you.”
If you enjoyed this article, sign up here to receive daily email updates from Money Marketing and Follow @_moneymarketing
