Top banker faces £3m insider trading charge

Former Treasury adviser Martyn Dodgson facing prosecution over long-running conspiracy

Four men, including one of the most senior bankers in the City, were charged yesterday with insider trading by the leading finance watchdog.

The Financial Services Authority (FSA) says that Martyn Dodgson, Andrew Hind, Benjamin Anderson and Iraj Parvizi conducted a long-running conspiracy to trade on inside information between November 2006 and March 2010, netting profits of £3m.

Mr Dodgson is the most high-profile name involved in the case and probably the best-known City figure ever to be charged with insider dealing.

As a high-flying managing director at Deutsche Bank, he was regarded as one of the top bankers in London with impeccable sources in both politics and finance.

Before the scandal first broke he was advising the Treasury on its investment in the bailed-out Royal Bank of Scotland and Lloyds. He had previously worked for other top banks including Cazenove and Lehman Brothers.

All four men were bailed to attend Westminster magistrates' court on 19 October.

They face prison sentences of up to seven years as well as bans from the City if found guilty.

The FSA describes the investigation, dubbed Operation Tabernula, as its largest and most complex insider dealing case to date.

The watchdog has long pledged to clamp down on insider trading, a practice it regards as rife but which is notoriously difficult to prove. It has had some success lately, securing 20 convictions over the last three years.

In this instance the allegation is that the conspirators were "front running" – that is, taking large positions in stocks ahead of clients that are known to be buying the same stocks.

Five other men have also been arrested in connection with the inquiry since 2010, but have not yet been charged. These men include Julian Rifat of the Mayfair hedge fund Moore Capital and Clive Roberts of Exane BNP Paribas.

The FSA said: "A number of individuals remain under investigation."

Messrs Dodgson and Hinds both live in north London. Mr Anderson lives in Surrey and Mr Parvizi in Spain. A lawyer for Mr Parvizi said he "emphatically denies the charges and is determined to clear his name". A lawyer for Mr Dodgson did not return a call seeking comment.

It is thought the FSA case centres on share trading in scores of companies, including household names such as Barclays and National Express.

In March 2010, more than 140 officers carried out dawn raids on 16 addresses across London and the South-east, seizing documents and computers. The investigation is being carried out jointly with the Serious Organised Crime Agency.

The City regulator has pursued a series of insider dealing cases since admitting in 2008 that its light touch approach to policing the Square Mile was not working.

This is easily its most important case, however, and will allow the watchdog, which is in the process of being dismantled and replaced by the new Financial Conduct Authority, to bow out on a high note.

Start your day with The Independent, sign up for daily news emails
Voices
voices
News
general electionThis quiz matches undecided voters with the best party for them
Arts and Entertainment
Keira Knightley and Matthew Macfadyen starred in the big screen adaptation of Austen's novel in 2005
tvStar says studios are forcing actors to get buff for period roles
News
Prince William and his wife Catherine, Duchess of Cambridge show their newly-born daughter, their second child, to the media outside the Lindo Wing at St Mary's Hospital in central London, on 2 May 2015.
news
ebooks
ebooksA celebration of British elections
  • Get to the point
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs Money & Business

Ashdown Group: Trainee Consultant - Surrey/ South West London

£22000 per annum + pension,bonus,career progression: Ashdown Group: An establi...

Ashdown Group: Trainee Consultant - Surrey / South West London

£22000 per annum + pension,bonus,career progression: Ashdown Group: An establi...

Recruitment Genius: Claims Administrator

£16000 - £18500 per annum: Recruitment Genius: This is an excellent opportunit...

Recruitment Genius: Senior SEO Executive

£24000 - £28000 per annum: Recruitment Genius: A Senior SEO Executive is requi...

Day In a Page

Fishing for votes with Nigel Farage: The Ukip leader shows how he can work an audience as he casts his line to the disaffected of Grimsby

Fishing is on Nigel Farage's mind

Ukip leader casts a line to the disaffected
Who is bombing whom in the Middle East? It's amazing they don't all hit each other

Who is bombing whom in the Middle East?

Robert Fisk untangles the countries and factions
China's influence on fashion: At the top of the game both creatively and commercially

China's influence on fashion

At the top of the game both creatively and commercially
Lord O’Donnell: Former cabinet secretary on the election and life away from the levers of power

The man known as GOD has a reputation for getting the job done

Lord O'Donnell's three principles of rule
Rainbow shades: It's all bright on the night

Rainbow shades

It's all bright on the night
'It was first time I had ever tasted chocolate. I kept a piece, and when Amsterdam was liberated, I gave it to the first Allied soldier I saw'

Bread from heaven

Dutch survivors thank RAF for World War II drop that saved millions
Britain will be 'run for the wealthy and powerful' if Tories retain power - Labour

How 'the Axe' helped Labour

UK will be 'run for the wealthy and powerful' if Tories retain power
Rare and exclusive video shows the horrific price paid by activists for challenging the rule of jihadist extremists in Syria

The price to be paid for challenging the rule of extremists

A revolution now 'consuming its own children'
Welcome to the world of Megagames

Welcome to the world of Megagames

300 players take part in Watch the Skies! board game in London
'Nymphomaniac' actress reveals what it was really like to star in one of the most explicit films ever

Charlotte Gainsbourg on 'Nymphomaniac'

Starring in one of the most explicit films ever
Robert Fisk in Abu Dhabi: The Emirates' out-of-sight migrant workers helping to build the dream projects of its rulers

Robert Fisk in Abu Dhabi

The Emirates' out-of-sight migrant workers helping to build the dream projects of its rulers
Vince Cable interview: Charging fees for employment tribunals was 'a very bad move'

Vince Cable exclusive interview

Charging fees for employment tribunals was 'a very bad move'
Iwan Rheon interview: Game of Thrones star returns to his Welsh roots to record debut album

Iwan Rheon is returning to his Welsh roots

Rheon is best known for his role as the Bastard of Bolton. It's gruelling playing a sadistic torturer, he tells Craig McLean, but it hasn't stopped him recording an album of Welsh psychedelia
Morne Hardenberg interview: Cameraman for BBC's upcoming show Shark on filming the ocean's most dangerous predator

It's time for my close-up

Meet the man who films great whites for a living
Increasing numbers of homeless people in America keep their mobile phones on the streets

Homeless people keep mobile phones

A homeless person with a smartphone is a common sight in the US. And that's creating a network where the 'hobo' community can share information - and fight stigma - like never before