Lehman 3/4

Client Attorney Privileged/Attorney Work Product/At Request of Counsel

Former Lehman Personnel

1. Ex-Deutsche Bank broker admits misleading watchdog

   Mar 3, 2016 | Financial Times

   By Caroline Binham
   
   
   ...Martyn Dodgson, 44, knew that a trading arrangement he had with an “odd” middleman — who, the court heard, used to be a consultant for Lord Rose, the former chairman of Marks and Spencer — was likely to have contravened the terms of his employment at Deutsche and previously at Lehman Brothers, and he did not give a full or accurate representation of his trading to the regulator when it arrested him, he told the jury at Southwark Crown Court on Thursday.

Client Attorney Privileged/Attorney Work Product/At Request of Counsel

Former Lehman Personnel

1. Ex-Deutsche Bank broker admits misleading watchdog

   Mar 3, 2016 | Financial Times

   By Caroline Binham

   A former Deutsche Bank managing director has admitted deliberately misleading the financial watchdog after arrest in his testimony as part of the UK’s most high-profile trial of insider trading.
   

   Martyn Dodgson, 44, knew that a trading arrangement he had with an “odd” middleman — who, the court heard, used to be a consultant for Lord Rose, the former chairman of Marks and Spencer — was likely to have contravened the terms of his employment at Deutsche and previously at Lehman Brothers, and he did not give a full or accurate representation of his trading to the regulator when it arrested him, he told the jury at Southwark Crown Court on Thursday...

   The FCA accuses Mr Dodgson of passing information from his work at Deutsche, and previously at Lehman before its collapse in 2008, to Mr Hind, who would then pass it to two “prolific” day traders who placed spreadbets, Ben Anderson, 71, of Richmond, Surrey and Iraj Parvizi, 50, based between Dubai, Spain and London. Another man, Grant Harrison, 46, whose career included stints at Panmure Gordon and Lloyds Banking Group, is also alleged to have passed inside information to Mr Hind in this way.

   The alleged ring split £7.4m in profits from six separate trades allegedly using inside information on companies including Paragon, Scottish & Newcastle and BSkyB that were all undertaking deals on which either Deutsche or Lehman were advising.

   Mr Hind, who was an accountant and also a director of Deskspace Offices, was described by his barrister, Bill Boyce QC, on Thursday as “odd” and as a “geek” who “adored” Mr Dodgson, and who built up a food bank with armoured defences at the onset of the financial crisis in case of social unrest.

   Mr Dodgson agreed with Mr Boyce’s characterisation.

   “You’ve seen his spears, I think,” Mr Boyce added.

   The jury has previously heard how the men hatched an alleged “elaborate” conspiracy using pay-as-you-go mobile phones, nicknames, and military-grade encryption with passwords named after luxury sports cars. Their arrests and raids in 2010 — the jury heard on Friday Mr Parvizi was hooked up to an intravenous drip at a clinic at the time — took 140 officers from the FCA and other agencies.

   The unregistered phones and iron keys — encrypted memory sticks that allow users to browse computers without leaving a normal trace — and handing over cash was “just Andy being Andy,” Mr Dodgson said of Mr Hind.

   Mr Dodgson placed £17m worth of trades over three-and-a-half years with Mr Hind. He made £235,000 total profit, he told the jury.

   Earlier this week under questioning from his barrister, Alison Pople QC, Mr Dodgson said on one occasion he made £281,000 in profits split with Mr Hind after “human error” saw the latter place an outsize spread bet on Scottish & Newcastle. The company was eventually taken over by Heineken and Carlsberg in 2007; Lehman was advising Carlsberg on the bid...

   For full story: http://www.ft.com/cms/s/0/b0d50546-e165-11e5-8d9b-e88a2a889797.html#axzz41v6a3Qzp

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