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
ebooksAn unforgettable anthology of contemporary reportage
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating

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

iJobs Job Widget
iJobs Money & Business

Recruitment Genius: Digital Optimisation Executive - Marketing

£30000 - £35000 per annum: Recruitment Genius: The UK's fastest growing, multi...

Recruitment Genius: Financial Reporting Manager

£70000 - £90000 per annum: Recruitment Genius: A Financial Reporting Manager i...

Recruitment Genius: Payments Operations Assistant

£23000 - £25000 per annum: Recruitment Genius: They win lots of awards for the...

Recruitment Genius: Telephone Debt Negotiator

£13500 - £20000 per annum: Recruitment Genius: This nationwide enforcement com...

Day In a Page

Sepp Blatter resignation: The beginning of Fifa's long road to reform?

Does Blatter's departure mean Fifa will automatically clean up its act?

Don't bet on it, says Tom Peck
Charles Kennedy: The baby of the House who grew into a Lib Dem giant

The baby of the House who grew into a Lib Dem giant

Charles Kennedy was consistently a man of the centre-left, dedicated to social justice, but was also a champion of liberty and an opponent of the nanny-state, says Baroness Williams
Syria civil war: The harrowing testament of a five-year-old victim of this endless conflict

The harrowing testament of a five-year-old victim of Syria's endless civil war

Sahar Qanbar lost her mother and brother as civilians and government soldiers fought side by side after being surrounded by brutal Islamist fighters. Robert Fisk visited her
The future of songwriting: How streaming is changing everything we know about making music

The future of songwriting

How streaming is changing everything we know about making music
William Shemin and Henry Johnson: Jewish and black soldiers receive World War I Medal of Honor amid claims of discrimination

Recognition at long last

Jewish and black soldiers who fought in WWI finally receive medals after claims of discrimination
Beating obesity: The new pacemaker which helps over-eaters

Beating obesity

The new pacemaker which helps over-eaters
9 best women's festival waterproofs

Ready for rain: 9 best women's festival waterproofs

These are the macs to keep your denim dry and your hair frizz-free(ish)
Cycling World Hour Record: Nervous Sir Bradley Wiggins ready for pain as he prepares to go distance

Wiggins worried

Nervous Sir Bradley ready for pain as he prepares to attempt cycling's World Hour Record
Liverpool close in on Milner signing

Liverpool close in on Milner signing

Reds baulk at Christian Benteke £32.5m release clause
On your feet! Spending at least two hours a day standing reduces the risk of heart attacks, cancer and diabetes, according to new research

On your feet!

Spending half the day standing 'reduces risk of heart attacks and cancer'
With scores of surgeries closing, what hope is there for the David Cameron's promise of 5,000 more GPs and a 24/7 NHS?

The big NHS question

Why are there so few new GPs when so many want to study medicine?
Big knickers are back: Thongs ain't what they used to be

Thongs ain't what they used to be

Big knickers are back
Thurston Moore interview

Thurston Moore interview

On living in London, Sonic Youth and musical memoirs
In full bloom

In full bloom

Floral print womenswear
From leading man to Elephant Man, Bradley Cooper is terrific

From leading man to Elephant Man

Bradley Cooper is terrific