UK Daily Mail
Wednesday, July 30, 2008
The Queen’s stockbroker Cazenove has been caught up in Britain’s biggest ever crackdown on insider trading.
Eight people were arrested in dawn raids yesterday by the City watchdog the Financial Services Authority.
Cazenove admitted that one of the arrested worked at its London offices as a sub-contractor.
A 40-strong team from the FSA swooped on addresses in London and the South East with back-up from City of London police.
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They are believed to have seized computers and paperwork.
The FSA says insider dealing – in which privileged information is used to make profits from share prices – is rife among financial institutions.
Yesterday’s swoop is the fourth this year, and the watchdog warns that more are to come as part of a ‘major ongoing investigation’.
The news is further embarrassment for Cazenove, which only last week had its reputation sullied over insider dealing allegations.
Malcolm Calvert, 64, a former trader and partner of Cazenove, was charged with 12 counts of insider dealing involving Â£1million worth of shares. He denies the charges.
A spokesman for Cazenove said last night: ‘We can confirm that a sub-contractor in a support function for Cazenove was one of the eight people arrested by the FSA.’
The prestigious bank can trace its history back to the 17th century.
This article was posted: Wednesday, July 30, 2008 at 4:25 am