FSA announces third successful insider dealing conviction – On 10 March 2010, the FSA published a press release announcing its third successful insider dealing conviction. Malcolm Calvert, a former partner and trader at stockbroking firm Cazenove, was found guilty on 10 March 2010 at Southwark Crown Court on five counts of insider dealing under section 52 of the Criminal Justice Act 1993. Mr Calvert made a profit of around £103,000 from trades that took place between June 2003 and October 2004.
According to the press release, the prosecution is “notable” due to the involvement of Bertie Charles Hatcher, a retired insurance broker and bookmaker, who was a friend of Mr Calvert. Mr Hatcher entered into trades using inside information provided by Mr Calvert, and shared the net profits with him. He was a key witness in Mr Calvert’s trial.
On 10 March 2010, the FSA also published the Final Notice it has issued to Mr Hatcher, dated 13 May 2008, fining him £56,098 for market abuse under section 118 of the Financial Services and Markets Act 2000 (FSMA). The fine represents the net profits of the illicit trades Mr Hatcher entered into. The FSA agreed to sanction Mr Hatcher using its regulatory powers rather than a criminal prosecution due to his agreement to assist with the investigation and prosecution of Mr Calvert. The FSA also reduced his fine “substantially” as a result of his cooperation. The FSA has explained that it treated Mr Hatcher in this way as it wants to encourage others to come forward and assist it with insider dealing and market abuse investigations and prosecutions. It intends to continue to enter into arrangements of this sort where it believes it is in the public interest, and the interests of justice, for it to do so.
According to a press release published by the FSA on 11 March 2010, Mr Calvert has been sentenced to 21 months in prison. The confiscation and costs hearing will take place on 23 April 2010.
Commenting on the conviction, Margaret Cole, FSA Director of Enforcement and Financial Crime, said:
“This is another milestone in our fight against market abuse… 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”.
read more
http://www.fsa.gov.uk/pages/Library/Communication/PR/2010/041.shtml
http://www.fsa.gov.uk/pubs/final/bertie_hatcher.pdf
http://www.fsa.gov.uk/pages/Library/Communication/PR/2010/043.shtml
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