Ex-Barclays Banker Pleads Guilty to Passing Inside Information to Plumber
July 12 2016 - 12:50PM
Dow Jones News
By Christopher M. Matthews
A former Barclays PLC director pleaded guilty Tuesday morning to
passing insider-trading tips to his plumber in exchange for a free
bathroom remodeling and cash.
Steven McClatchey, 58, pleaded guilty to one count of conspiracy
and one count of wire fraud in Manhattan federal court. Mr.
McClatchey said he passed on information about mergers and
acquisitions deals he misappropriated from his former employer and
passed them to his friend, Gary Pusey.
Mr. McClatchey worked for seven years at the Manhattan office of
Barclays, where he was responsible for tracking the bank's
involvement in potential mergers and acquisitions. He distributed a
weekly document to select Barclays employees called "M&A Global
Weekly Business Update," which included deals that were likely to
become public the following week.
Mr. McClatchey said Tuesday that Mr. Pusey, a plumber, gave him
cash in exchange for the tips. Prosecutors said Mr. Pusey also
performed tiling and other renovations for Mr. McClatchey for the
inside information. Mr. Pusey then used the tips to make profitable
trades on the stocks of around 11 publicly traded companies,
pulling in $76,000 in illegal profits, prosecutors said.
Mr. Pusey, 47, pleaded guilty in May to his participation in the
scheme and has been cooperating with the government, according to a
criminal complaint filed by the Manhattan U.S. attorney's office.
The Securities and Exchange Commission also filed civil
insider-trading charges against the two men.
Barclays, which is described in the complaint only as
"Investment Bank A, " said it has cooperated with the government
"since learning about this incident involving a former employee."
Mr. McClatchey worked in a back-office role and didn't interact
directly with clients, according to a person familiar with the
matter.
Mr. McClatchey's sentencing is scheduled for October.
Write to Christopher M. Matthews at
christopher.matthews@wsj.com
(END) Dow Jones Newswires
July 12, 2016 12:35 ET (16:35 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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