21-month sentence for £100k-profit insider dealer branded excessive

A FORMER partner at the Queen's stockbrokers jailed for insider dealing will appeal against his 21-month sentence and conviction, his lawyers said yesterday.

Malcolm Calvert, who retired from the investment bank Cazenove ten years ago, used an unknown insider to get confidential information on a series of proposed takeovers and mergers.

He then directed his friend Bertie Hatcher to buy shares in three firms, making the pair more than 100,000 profit, Southwark Crown Court in London heard. The Financial Services Authority (FSA) said the conviction was "a shot across the bow for any City workers who may be tempted to trade using insider knowledge".

Yesterday, in a joint statement, Calvert's lawyers Tony Woodcock and Harvey Dyson said: "Mr Calvert's conviction on five counts of insider dealing is disappointing. The immediate custodial sentence of 21 months is excessive, and Mr Calvert will be appealing both against sentence and conviction."

Calvert, 65, used confidential information to tell Mr Hatcher to buy shares in three companies, making the pair a gross profit of 103,883.11.

These purchases included 70,000 shares in pharmaceutical company Vernalis, 50,000 shares in road construction firm Johnston Group and 30,500 shares in water firm South Staffordshire between 24 June, 2003, and 18 October, 2005.

Calvert, of Cobham, Surrey, was cleared of the seven other counts which related to a further three companies – cider-makers HP Bulmer, Scotland-based Macdonald Hotels and motoring organisation RAC.