MANHATTAN (CN) — A former Barclays director tipped a plumber friend to inside information from which he made $76,000, federal prosecutors claim in separate lawsuits against the men.
Steven V. McClatchey gave his friend Gary Pusey inside information on 10 coming deals, from March 2014 through August 2015, the U.S. attorney said says.
McClatchey was arrested Tuesday in Long Island. Pusey pleaded guilty on Friday to conspiracy, securities fraud and wire fraud, the U.S. Attorney’s Office said.
Prosecutors say Pusey paid McClatchey in cash for the tips, usually into McClatchey’s gym bag at the Long Island marina where they both kept boats, or in McClatchey’s garage. Pusey also remodeled one of McClatchey’s bathrooms for free in exchange for the scoop, the government says.
The men met at the Yachtsmen’s Cove marina in Freeport, N.Y., where they docked identical fishing boats at adjacent slips.
Pusey’s biggest score was $21,800 from a tip on Emulex stock, which rose 24.8 percent after Avago announced it was acquiring it.
McClatchey was charged with conspiracy to commit securities and wire fraud; wire fraud; and 11 counts of securities fraud. Wire fraud is punishable by up to 20 years in federal prison, each other charge by up to 25 years.
Pusey pleaded guilty to conspiracy to commit securities and wire fraud; wire fraud; and 11 counts of securities fraud.
Both men also could be fined up to $5 million.
A representative from Barclays confirmed that McClatchey was a former director of investment at Barclays Investment Bank, a corporate level one step above vice president.
McClatchey, 58, worked in the New York City offices of the London-based bank from December 2008 to December 2015.
The Barclays spokesman said: “Barclays wholly supports the Southern District of New York, the SEC and the FBI in their respective investigations, and has cooperated fully with them since learning about this incident involving a former employee.”
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