Malcolm Calvert, a former equities marketmaker who had retired from stock broker Cazenove, was found guilty of five counts of insider dealing. He made £103,883 profit on trades between June 2003 and October 2004. It appears that Mr Calvert was getting information about forthcoming positive announcements from someone inside Cazenove and using a friend (Bertie Hatcher - see below) to buy shares for him. He apparently told Hatcher that he had a good source of share tips but, because he was receiving a pension from Cazenove, was in an awkward position with regard to buying shares. The identity of the insider is not known. Calvert was sentenced to 21 months in prison.
The FSA has fined Bertie Hatcher, a retired bookmaker and insurance broker, £56,098 for market abuse, and published details of the agreement it made with him which led to his assistance in the prosecution of Mr Calvert (above). The fine represents the full disgorgement of his share of the net profit from trades made pursuant to inside information received from Calvert (the profits were split: one third for Mr Hatcher and one third for Mr Calvert). The FSA agreed not to bring a criminal prosecution against Hatcher or impose a fine in addition to the disgorgement because of his assistance with the prosecution of Calvert, noting the need to encourage others to provide information to the FSA. No indication is given of the level of penalty that would otherwise have been imposed.
View Former Cazenove partner found guilty of insider dealing, 10 March 2010
View Former Cazenove broker sentenced to 21 months in prison for insider dealing, 11 March 2010
View FSA Final Notice - Bertie Charles Hatcher, 10 March 2010