£350k confiscation order made against former Schroders trader

The City watchdog has won a court case against a former Schroders fund manager for the sum of £350,000.

On Monday, Damian Clarke was ordered to pay the amount within three months or face an additional three years behind bars on top of his two-year conviction from June last year.

Clarke, 41, who was employed by Schroders Investment Management between 2000 and 2013, first as an assistant fund manager and then later as an equities trader received inside information about significant corporate events.

He used this knowledge to place trades using accounts in his own name, as well as those of close family members over a nine-year period between 2003 and 2012.

While the profits made from Mr Clarke's insider dealing were estimated to amount to £155k, Judge Korner, sitting at Southwark Crown Court ruled that as a result of the extent of his offences, he was deemed to have a "criminal lifestyle," which in turn allows the court to assume that the profits made from other trading within the period also represent the proceeds of crime.

A lawyer for the Financial Conduct Authority (FCA) stated that Clarke had made about £720,000 as a result of his trading, but only had £350,000 in assets therefore, a confiscation order was made in that sum.

"Clarke engaged in a systematic and long-running criminal enterprise in order to make significant illegal gains for himself and his family," Mark Steward, the FCA’s head of enforcement, said.

"The message should now be clear that insider dealers are increasingly likely to be caught and will be made to fully account for their misconduct."