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UPDATE 3-Ex-Barclays executive indicted by US of bootleg tips to plumber


(Adds sum of case)

By Nate Raymond

NEW YORK May 31 A former executive during Barclays
Plc was arrested on Tuesday on U.S. charges that he
provided inside information about imminent mergers he learned
about during a bank to a plumber, who used a tips to make
$76,000 illegally.

Steven McClatchey, 58, was charged in a rapist complaint
filed in Manhattan sovereign justice with conspiracy, handle rascal and
securities rascal after a plumber, Gary Pusey, personally pleaded
guilty on Friday and concluded to concur with authorities.

McClatchey, who worked during a British bank in a Manhattan
offices from Dec 2008 to Dec 2015, was arrested on
Long Island, where he resides. He was expelled after in a day
following a justice hearing.

McClatchey’s lawyer, Steven Kartagener, declined to comment.
An profession for Pusey, 47, did not respond to requests for
comment.

The charges were announced by Manhattan U.S. Attorney Preet
Bharara, who has overseen an insider trade crackdown that has
resulted in 102 people being charged and 78 being convicted
since 2009.

That pull has suffered new setbacks following a 2014
appellate statute that singular a range of insider trade laws,
resulting in charges being forsaken or discharged opposite 14
defendants.

According to a censure and a associated U.S. Securities and
Exchange Commission lawsuit filed on Tuesday, McClatchey was
responsible for tracking all intensity deals involving a bank.

He began tipping Pusey, a crony he met by boating, as
early as 2013, enabling a plumber to govern trades forward of
merger announcements involving 11 companies, including Forest
Oil Corp and PetSmart Inc.

In exchange, Pusey paid thousands of dollars in money to
McClatchey, infrequently fixation money in a gym bag that McClatchey
brought with him to a jetty in Freeport, New York, and provided
free lavatory remodeling services, authorities said.

While Barclays was not identified by name in justice papers,
the bank reliable it was a British investment bank that had
employed McClatchey.

In a statement, Barclays pronounced it has cooperated entirely with
authorities, including a Federal Bureau of Investigation and
the SEC “since training about this occurrence involving a former
employee.”

The cases in a U.S. District Court, Southern District of
New York, are U.S. v. McClatchey, No. 16-mj-3433, and Securities
and Exchange Commission v. Pusey, No. 16-cv-04029.

(Editing by Cynthia Osterman and Matthew Lewis)

Article source: http://www.reuters.com/article/usa-insidertrading-idUSL1N18S0PC

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