A married couple have been charged with insider dealing as part of the Financial Services Authority’s (FSA’s) clampdown on market abuse just days after the conviction of former Cazenove banker Malcolm Calvert.
Former Dresdner Kleinwort investment banker Christian Littlewood and his wife Angie Lew have been charged with 13 counts of insider dealing in a ring alleged to have operated over almost a decade.
They have been bailed ahead of a preliminary appearance at Westminster Magistrates’ Court next month.
The FSA said the offences relate to shares traded in a number of companies listed on both the London Stock Exchange’s main market and Aim.
A third suspect has been arrested in Mayotte, a French overseas territory in the Comoros Islands. The Singapore national was arrested by French authorities after a European arrest warrant was issued on the request of the FSA. He will make a first appearance later this week.
It is the first time a suspect has been extradited on charges raised by the FSA. Simon Morris of law firm CMS Cameron McKenna said: “For too long we have heard noises about insider dealing rings being run offshore and far from FSA’s remit. Here’s the proof that the FSA has long arms, and the City will welcome this.”
Christian Littlewood was a former Dresdner Kleinwort corporate finance adviser. He worked at Shore Capital at the time of his arrest, although it is not thought the investigation relates to his time there. He also had a stint working for Dawnay, Day. While at Dresdner, the Bristol University-educated Littlewood advised on mid-market UK corporate finance deals.
Last week Calvert was convicted of 12 counts of insider dealing after he left Cazenove in 2000. He was sentenced to almost two years behind bars.
The court heard how the 65-year-old collected envelopes stuffed with money at horse-racing events. It was the biggest insider trading prosecution led by the FSA.
FSA HEAD OF ENFORCEMENT
Margaret Cole is the FSA’s head of enforcement, responsible for running the team that recently pushed for the conviction of Malcolm Calvert and responsible for the investigation of Christian Littlewood and his wife.
She heads up a team of 200, reporting to outgoing chief executive Hector Sants. The enforcement division’s work involves conducting investigations into regulatory failures, including civil and criminal proceedings, uncovering market abuse, and seeking compensation for consumers. The Cambridge law graduate joined the FSA in 2005. She is no stranger to controversial cases.
She founded the dispute resolution department at international law firm White & Case, where she represented Royal Bank of Canada in proceedings in London and New York regarding an Enron-related $500m swap transaction. The 47-year-old also worked on recovering the Maxwell pension funds lost by trustees after his mysterious disappearance when she worked as a partner for Stephenson Harwood between 1990 to 1995.
She was also responsible for a large number of recovery actions in the Liquidation of the Bank of Credit & Commerce International, and claims brought in the administration of British & Commonwealth.
She advises banks on financial regulation, risk management and money laundering.
She is also qualified as a Mediator with CEDR and the ADR Group.
The wider remit of the FSA is to maintain market confidence, promote public understanding, secure protection for consumers and fight financial crime.