Ex-Deutsche Bank Broker Pays $1.4 Million in Criminal Case

(Bloomberg) -- A former Deutsche Bank AG broker agreed to pay more than 1 million pounds ($1.4 million) that he made through insider trading, bringing to an end to one of the U.K. Financial Conduct Authority’s biggest criminal cases.

Martyn Dodgson, who is serving a 4 1/2 year prison term, will give up 1.07 million pounds under a confiscation order handed down by a London judge on Friday. Andrew Hind, an accountant who was also convicted by a jury in 2016, will pay close to 625,000 pounds.

Ex-Deutsche Bank Broker Pays $1.4 Million in Criminal Case

The confiscation orders draw a line under a broader FCA investigation, dubbed Operation Tabernula. Dodgson made 469,720 pounds from the insider trading, while Hind cleared profits of 238,460 pounds, according to the regulator.

“They were driven by greed and self-interest, but through their actions they have lost their liberty, their livelihoods and their reputations,” said Mark Steward, the FCA’s head of Enforcement and Market Oversight. “Insider dealing is a serious crime that undermines our markets.”

Dodgson, wearing a blue knitted sweater and loafers, and Hind, his spectacles pushed up on his head, chatted while waiting for the ruling Friday. When Jeffrey Pegden made his order, Dodgson looked ahead and Hind yawned. Both declined to comment when approached.

Dodgson must pay just over 1 million pounds within 14 days and the rest within 3 months or face another 7 1/2 years in prison. Hind must pay 356,632 pounds within 14 days and the rest within three months, Judge Pegden said. 

The FCA had accused Dodgson and another man, who was acquitted, of passing inside information on possible deals from their jobs between 2006 and 2010 to Hind, who passed them to two others to trade on.

Three other defendants in the case, former Panmure Gordon & Co. corporate broker Andrew "Grant" Harrison and day traders Benjamin Anderson and Iraj Parvizi, were acquitted.

The FCA had recalculated the men’s benefit from the crime and adjusted it to today’s money. Dodgson, who also worked at Morgan Stanley and Lehman Brothers, was forced to give up all of his available assets, having made about 50,000 pounds more than he was ordered to pay. And Hind is left with nearly 160,000 pounds, after he has met the confiscation order, which is in the full amount of what he made.

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