Malcolm Calvert, who worked his way up from the post room at Cazenove to become a partner in the business, is today starting a 21 month prison sentence after being found guilty on five counts of insider trading. He was found not guilty on a further seven counts brought by the Financial Services Authority (FSA) but this is still one of the most high-profile insider trading convictions by the FSA.

While the maximum sentence for the offences in question was seven years, and some believe the 21 month sentence is lenient, it is believed he was only a small cog in a large insider dealing operation. It is believed he was passed information on which he traded to gain profit of just over £100,000 which was then allegedly split with his "partner". It will be interesting to see whether recent convictions for insider trading will lead to a reduction in the activity which is being ever more closely monitored by the authorities.

Historically insider trading has been one of the more difficult criminal convictions to obtain although the FSA has a much better track record in this area over the last few years. Improved surveillance would appear to be the key to the increased conviction rates although some are sceptical as to whether it will impact upon insider trading activity in the future.

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