CSA Partners: Compliance Blog

Four Charged for in U.K. FSA Insider-Trading Probe / Martin

02/12/2012.

Former Deutsche Bank AG (DBK) managing director Martyn Dodgson was among four people charged with insider trading by U.K. authorities after an investigation spanning two-and-a-half years.

Dodgson, who was employed by Deutsche Bank at the time of his arrest in March 2010, as well as Andrew Hind, Benjamin Anderson and Iraj Parvizi were charged with “conspiracy to insider deal” between Nov. 1, 2006, and March 23, 2010, the Financial Services Authority said today in an e-mailed statement. The agency alleges the men made more than 3 million pounds ($4.8 million) on improper trades.

The charges stem from an investigation into the front- running of block trades, known as Operation Tabernula, Latin for little tavern. The FSA arrested seven people and raided 16 addresses in London and southeast England in March 2010 as part of the crackdown. Two more arrests came later.

The men were all released on bail and must appear at Westminster Magistrates Court on Oct. 19.

Tabernula, conducted along with the U.K. Serious Organised Crime Agency, is the “largest and most complex insider dealing investigation to date,” the regulator said in the statement. The authority has been cracking down on market abuse and insider trading ahead of being disbanded next year and having its enforcement duties taken over by the Financial Conduct Authority.

Rifat, Roberts

Deutsche Bank “cooperated fully with the authorities,” the lender said in an e-mailed statement. “The investigation concerned one individual, Martyn Dodgson, and not the bank itself.”

Those arrested in 2010 include Dodgson, Julian Rifat of Moore Capital Management LLC, Clive Roberts, the head of European sales trading at Exane BNP Paribas and Novum Securities Ltd.’s Graeme Shelley. The agency said today that, “a number of individuals remain under investigation.”

Parvizi “emphatically denies the charges and is determined to clear his name,” Peter Hughman, Parvizi’s lawyer, said in a telephone interview today.

Michael Potts at Byrne and Partners, the lawyer for Anderson, declined to comment. Hind’s lawyer, Miles Herman at Lewis Nedas Law, couldn’t immediately be reached for comment. Tim Harris, a lawyer at Bark & Co. in London who represents Dodgson, didn’t immediately respond to a voice mail seeking comment on the charges.

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