Calvert could face monster costs bill for illegal trading

MALCOLM CALVERT should surrender more than £950,000 in a confiscation and costs order, the Financial Services Authority has suggested.

The former Cazenove partner, who is currently serving a 21-month jail sentence after he was found guilty of five counts of insider trading, could pay £956,863 back to the government.

The Financial Services Authority (FSA), which first slapped Calvert with 12 charges of insider trading two years ago, said in court that he should forfeit £473,955 as the proceeds of his crime and pay an additional £482,908 for the prosecution costs.

Judge Peter Testar at the Southwark Crown Court said that he will come to a decision in 14 days time after hearing from the FSA that Calvert should pay for the total amount of the trading scheme.

It is alleged that Calvert had colluded with friend Bertie Hatcher to sell shares in three separate companies before their proposed takeovers went public.

The court heard that Hatcher spent £502,143 on shares on the three companies and then sold them for £606,026 after the takeovers had taken place.

Calvert’s lawyer said the FSA’s demands had been miscalculated, while his barrister argued that the order should be cut down to £65,000.

It is understood that Calvert made a £103,000 profit from the illegal trades, while Hatcher gained immunity from the FSA when he notified them of Calvert’s movements.

It is expected that Calvert’s lawyers will launch an appeal.