Ex-Cazenove partner guilty of insider trading

11 March 2010

A former partner at stockbroker Cazenove has been found guilty of insider trading in the UK.

Malcolm Calvert made around £103,883 ($155,448) from insider information – using knowledge that was not made public to buy and sell around 420,000 shares in six different companies.

The prosecution of Cazenove trader involved evidence being given against Calvert by his former friend, Bertie Hatcher, who had also been involved in the dealings.

Hatcher has been fined £56,098 for market abuse by the Financial Services Authority (FSA) with a full sentencing hearing set to take place later today (March 11th 2010).

Margaret Cole, director of enforcement and financial crime at the FSA, said: "It's 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."

Last November, JP Morgan bought Cazenove in a $1.7 billion deal that saw the US bank take control of the 50 per cent stake in the stockbroker it did not already own.

By Tony Aynsley

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