A former director at Barclays Plc was arrested on Tuesday on U.S. charges that he provided inside information about impending mergers that he learned about at the bank to a plumber, who used the tips to illegally make $76,000 (£52,526).
Steven McClatchey, 58, was charged in a criminal complaint filed in Manhattan federal court with conspiracy, wire fraud and securities fraud after the plumber, Gary Pusey, secretly pleaded guilty on Friday and agreed to cooperate with authorities.
McClatchey, who worked at the British bank in its Manhattan offices from December 2008 to December 2015, was arrested on Long Island, where he resides, and was expected to appear in court later in the day.
Lawyers for McClatchey and Pusey, 47, could not immediately be reached for comment.
The charges were announced by Manhattan U.S. Attorney Preet Bharara, whose office has been engaged in a crackdown on insider trading that since 2009 has resulted in 102 people being charged and 78 being convicted.
That crackdown has suffered significant setbacks more recently following a 2014 appellate ruling that limited the scope of the applicable laws, resulting in charges being dropped or dismissed against 14 insider trading defendants. ,
As part of his job, McClatchey was responsible for tracking all potential deals in which the bank was involved, enabling him to obtain highly confidential information on them, according to the complaint and a related U.S. Securities and Exchange Commission lawsuit filed on Tuesday.
He began tipping Pusey, a friend he met through boating, as early as…