Jailed: Schroders inside trader who made £155k posing as family member
A TRADER at one of Britain’s most prestigious investment houses impersonated members of his own family in an insider trading scam.
Damian Clarke, a former equities trader and assistant fund manager at Schroders, made at least £155,000 from illicit gambling on stocks.
He was jailed yesterday for two years, and during his trial Southwark Crown Court heard he used secret information about upcoming deals to make a profit.
The 40-year-old was arrested at his desk in the City following an investigation into nine years of illegal trading.
He mostly carried it out in the office moments after being sent advance information on deals involving companies in which Schroders was a shareholder.
Clarke used his own name and the names of family members to buy and sell shares. He set up accounts in their names to cover his tracks – and he even pretended to be one of them on the phone.
His deception meant four of his family were arrested during the probe by the Financial Conduct Authority, before the investigation against them was discontinued. Clarke, who lives in Lincolnshire, was charged with nine counts of insider trading on firms including housebuilder Swan Hill Group and plumbing and heating firm BSS Group.
Prosecutors said these were sample counts and his profits could have been as high as £363,000. He admitted seven of the counts in July last year after ini- tially denying them, then pleaded guilty to the final two less than a week before his trial was due to start.
Clarke’s lawyer Anthony Bell said he had needed psychiatric help since his arrest and had even contemplated suicide. He cried as the sentence was read out yesterday.
A Schroders spokesman said: ‘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.’