A former partner of the blue-chip stockbroker Cazenove jailed last month for insider dealing faces a bill of almost £1m to repay profits he made on his trades and cover prosecution costs.
Malcolm Calvert and a friend made an estimated £103,000 between 2003 and 2005 from buying shares in companies just before takeovers were unveiled. The Financial Services Authority (FSA) yesterday told a judge that Calvert should pay £474,000 in confiscation and almost £483,000 to cover its costs.
Calvert's barrister, Hugo Keith, told the court both amounts were excessive. "It's a grotesque sum to see," he said. Judge Peter Testar said he will decide within two weeks how much Calvert has to pay.
The key issue is whether so-called confiscation is based on the profit made from the trades or the price the shares were sold for, which was £606,000.
Calvert is appealing his 21-month jail sentence. The 65-year-old has net assets of £1.8m, the court was told. He retired from Cazenove in 2000, but asked a friend to purchase shares based on tips he received from a source. They split the proceeds.Reuse content