City bank source 'leaked' tips to ex-trader

Mr Calvert denies 12 counts of insider dealing

A retired stockbroker accused of insider trading was tipped off by a source at the investment bank where he used to work, a court has heard.

Malcolm Calvert, who retired from brokerage Cazenove 10 years ago, is said to have used leaked information to make a profit of £280,000.

Southwark Crown Court heard Mr Calvert then got a friend to buy the shares as he could not risk using his own name.

The 65-year-old of Fairmile Lane, Cobham, Surrey, denies all the charges.

Mr Calvert is accused of using the secret information on a series of proposed management buyouts, takeovers and mergers.

'Passing information'

The jury heard how he told his friend, who had no connection with the investment bank, to buy nearly 500,000 shares in six firms.

Peter Carter, QC, prosecuting, told the jury: "Somebody at his old place of work was passing information to him that they should not have done."

The prosecuting authority, the Financial Services Authority (FSA), said it still did not know the identity of any insider.

Calvert, who is on bail for the duration of the three-week trial, denies 12 counts of insider dealing between 23 April 2003 and 8 March 2005.

The trial continues.

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