On 10 March 2010, the Financial Services Authority (FSA) published a press release announcing that Malcolm Calvert, a former equities marketmaker at Cazenove, was found guilty of 5 counts of insider dealing under section 52 Criminal Justice Act 1993 after making £103,883 profit. Malcolm Calvert was, on 11 March 2010, sentenced to a twenty one month custodial sentence. This is the third successful prosecution brought by the FSA for insider dealing.

On the same day, the FSA published the Final Notice it has issued to Bertie Charles Hatcher, a retired bookmaker and insurance broker and a friend of Calvert’s, fining him £56,098 for engaging in market abuse in contravention of section 123 (power to impose in cases of market abuse) Financial Services and Markets Act 2000, in relation to the purchases of various shares of companies trading on the London Stock Exchange. The purchases were made solely upon information received from Calvert and the net profits were shared between them.

Hatcher played a key role in the prosecution against Calvert, having agreed to provide evidence in the trial, not only against himself, but more importantly against Calvert. In return for his cooperation and assistance throughout the investigation, the FSA agreed to sanction Hatcher and did not pursue a criminal prosecution. Instead, the FSA imposed a “substantially” reduced financial penalty of £56,098.

The confiscation and costs hearing will take place on 23 April 2010.

(FSA, Press Release - Former Cazenove partner found guilty of insider dealing - 10.03.2010)

(FSA, Press Release - Former Cazenove broker sentenced to 21 months in prison for insider dealing - 11.03.2010)

(FSA, Final Notice to Bertie Charles Hatcher 13.05.2008)