Retired Cazenove broker jailed for insider dealing

Mr Calvert instructed his friend which shares to buy using inside information

A retired stockbroker from Surrey has been jailed for 21 months after being found guilty of insider dealing.

Malcolm Calvert, 65, of Fairmile Lane, Cobham, used his contacts to get inside information on business deals before getting a friend to buy shares.

Calvert was convicted of five counts of insider dealing between June 2003 and October 2005 at Southwark Crown Court.

When passing sentence, Judge Peter Testar told Calvert that insider dealing was not a victimless crime.

He said: "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."

'Conducted deliberately'

He said the conviction "shows nothing more or less than if someone is determined to break the rules it's impossible to stop them".

He also said he found "no fault on the part of any institution" and that Calvert "conducted these offences entirely deliberately".

Calvert, who retired from the investment bank Cazenove 10 years ago, was cleared of a further seven counts relating to a further three companies.

As one of the City's foremost practitioners, his conviction dents the public image of that institution.

Hugo Keith QC,
defence

In mitigation, Hugo Keith QC said Calvert's conviction caused enormous stress and humiliation to him, his wife and their two daughters.

He said Calvert had a "long and distinguished" career in the City and had never been the subject of any disciplinary matters.

He added: "As one of the City's foremost practitioners, his conviction dents the public image of that institution."

A jury deliberated for more than 18 hours before reaching a guilty verdict on Wednesday.

The court previously heard how the former partner at the Queen's stockbrokers used leaked information from an unknown source about future mergers and acquisitions.

His friend, Bertie Hatcher, bought more than 150,000 shares in three firms on Calvert's instructions, making more than £100,000 profit.

A hearing to determine costs and the sum of money to be confiscated from Calvert will be held on April 23.

The Financial Services Authority, which brought the case against Calvert, said the conviction was "a shot across the bow for any City workers who may be tempted to trade using insider knowledge".

BBC business news editor Robert Peston said the conviction was a "massive symbolic success" for the Financial Services Authority.

But the failure of the authorities to identify the employee who leaked the information to Calvert "leaves a stain on the reputation of Cazenove only weeks after it sold itself to the huge US investment bank JP Morgan", he added.