(Bloomberg) — Graeme Shelley, a former trader at London-based stockbroker Novum Securities Ltd., was charged with two counts of insider trading at a London court today.
Shelley used insider information to encourage another to deal in securities that were price-affected from June 2009 to September 2009 and dealt in securities that were price- affected through an intermediary from October 2009 to November 2009, according to the court charge sheet.
Shelley and former Moore Capital Management LLC trader Julian Rifat were both arrested in March 2010, along with five others, as part of Operation Tabernula, the U.K.s largest insider-trading investigation. Rifat was arraigned on eight counts of insider trading in January. Seven others have been charged in the probe, including Deutsche Bank AG managing director Martyn Dodgson and former Aria Capital Ltd. director Iraj Parvizi, who pleaded not guilty in December.
Four of the defendants lost their trial lawyers in December due to cuts in legal aid, part of austerity measures to trim the U.K. deficit.
Insider dealing is a criminal offense in the U.K., punishable by a fine or as much as seven years in prison.
Shelleys next court appearance is scheduled for May 14.
