Ex-Schroders trader sentenced for insider dealing

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Former Schroders equities trader Damian Clarke has been sentenced to two years behind bars after pleading guilty to nine counts of insider dealing.

Southwark Crown Court heard the offences took place over nine years between 2003 and 2012, during which time Clarke was initially an assistant fund manager at Schroders, before becoming an equities trader in 2006.

Clarke, 40, received inside information about significant corporate events, mainly announcements of mergers and acquisitions, and used the information to place trades under his own name and that of close family members.

Clarke’s profits from the insider trading totalled £155,161.98.

In sentencing Judge Korner described the offences as “pre-meditated, deliberate and dishonest”.

Mark Steward, director of enforcement and market oversight at the FCA, says: “This is yet another case involving a city professional caught and jailed for abusing the market that employs him.

“Insider dealing is increasingly detectable these days and, where detected, more likely to lead to terms of imprisonment and shame rather than glamorous profits and fame.”

Clarke pleaded guilty to seven counts of insider dealing on July 2015 and admitted guilt over the remaining two counts in March this year.

A Schroders spokesperson says: “Clarke is no longer employed by Schroders, and these proceedings relate entirely to his personal actions. Schroders has not been subject to any investigation, and has provided full co-operation to the FCA throughout this matter. There is no indication of any detrimental impact on our clients or financial results.”