The case against Malcolm Calvert – that he indulged in the crime of buying shares while in the possession of inside information – has been followed with keen interest across the City of London.
Not least because Calvert (Streaky to his friends) is a former Cazenove partner. A blue blood gone bad, the FSA said.
On Wednesday, at Southwark Crown Court, Calvert was found guilty on five counts of insider dealing, which netted him £103,883 between June 2003 and October 2004.
For this Streaky can thank his former friend, Bertie Hatcher, a former bookie who used to trade on Streaky’s behalf. When the FSA challenged Hatcher over his dealings the rat he turned state witness in return for the FSA dropping criminal proceedings against him. Hatcher has walked away with got a £56,098 fine instead.
And that’s the real significance of this case – the FSA’s willingness to cut deals with those involved in insider trading.
Indeed, Margaret Cole, director of enforcement and financial crime at the FSA, was very keen to hammer home the point in a press release.
“Hatcher took part in illicit trades using inside information and profited from them; because of this he has received a significant fine. However we were also mindful of the need to encourage others to come forward and assist in the investigation and prosecution of insider dealing and market abuse – especially where it is suspected that two or more people have been involved – and that is why we made an agreement with him.
“Hatcher provided valuable evidence to the FSA, not just about his own misconduct, but also in relation to Calvert. We will continue to enter into agreements of this sort where we believe it is in the public interest and interests of justice for the FSA to do so.”
Streaky will be sentenced on Thursday and he might want to pack the proverbial soap-on-a-rope: this case has been heard by one Peter Testar, the judge who sent a dentist and his work experience son to jail just before Christmas for similar crimes.