Financial regulator won a case yesterday resulting in sentencing of Malcolm Calvert, a former partner at the Queen's stockbroker Cazenove, to 21 months jail. Malcom was accused of insider trading deals and was found accountable by Judge Peter Testar at London's Southwark Crown Court.
This case has been termed as the “biggest case of its kind” as it involved the most high profile trading scam and was concluded after Ernest Saunders was sentenced to a five-year jail 1990.
The judge stated, 'It leads to the dishonest enrichment of a few at the expense of the public interest and of confidence in a clean and fair market”.
Calvert was booked for passing confidential information for trading shares before three takeover deals in 2003 to 2005. Accompanied by Bertie Hatcher, a bookmaker this scandal collected £100,000 for both the accused.
Calvert, become a partner at Cazenove in 2000. Where after having an access to confidential information he passed it to Hatcher, who in turn purchased shares in three companies: Vernalis, Johnston Group and South Staffordshire. Following the announcement of the takeover deals, profit was earned by the two.