Prosecution demands £1 million from former Cazenove partner Calvert
24 Apr 2010
Prosecution lawyers yesterday asked former partner at the Queen's stockbroker Cazenove, Malcolm Calvert, to cough up £956,863 to meet prosecution costs and sought confiscation of the proceeds from his illegal trading.
A payment of £482,908 will cover the cost of the case while confiscation payment will be about £473,995, the Independent newspaper reported today.
The confiscation payment would equate to two-thirds of the value of the sale price of the shares on which Calvert made insider trades.
However, Hugo Keith, the barrister of Calvert, said the sum claimed by the prosecution was "grotesque" and asked judge Peter Testar to show a "high-degree of proportionality".
Calvert was sentenced last month to 21 months in prison after being found guilty on five out of 12 counts of insider trading. He is appealing his 21-month jail sentence.
Calvert and a friend made an estimated £103,000 between 2003 and 2005 from buying shares in companies just before takeovers were unveiled. He retired from Cazenove in 2000, but asked a friend to purchase shares based on tips he received from a source. They split the proceeds.
After hearing arguments from both sides, Testar adjourned the hearing to consider his verdict and said a decision would be announced within 14 days.
Calvert, who is serving his sentence at Ford Open Prison, was attending court for the first time since being imprisoned last month.
He has launched an appeal against his conviction and a hearing is expected shortly, though a court date has yet to be set.
The 65-year-old has net assets of £1.8 million, the court was told.
