Photographer: Jason Alden/Bloomberg

Five Stand Trial in Climax to Record U.K. Insider-Trading Case

  • Jury selection begins Monday in `Operation Tabernula' probe
  • Ex-Deutsche Bank manager is among the five defendants

Five former finance professionals, including a one-time Deutsche Bank AG manager, will go on trial next week for insider trading, almost six years after the U.K. markets regulator sent shock waves through London with a series of dawn raids and arrests.

The five defendants, who include former bankers, accountants and day traders, are charged with conspiring to trade securities with inside information between November 2006 and March 2010. Jury selection in the case, which has been dubbed Operation Tabernula, will begin Monday at Southwark Crown Court.

The U.K. markets regulator started the probe amid criticism from politicians over its handling of the 2008 financial crisis and failure to prosecute anyone for insider trading. Seven men were arrested in early morning raids in 2010 and three more were apprehended later, making Operation Tabernula -- "little tavern" in Latin -- the largest insider-trading ring tackled by the watchdog, now known as the Financial Conduct Authority.

The five men on trial are ex-Deutsche Bank Managing Director Martyn Dodgson, former Altium Capital Ltd. Managing Director Grant Harrison, Benjamin Anderson, a private day trader, former Aria Capital Ltd. director Iraj Parvizi, and accountant Andrew Hind. A sixth was removed from the trial in recent months due to health issues.

The case, which is scheduled to last about three months, is the most complex insider-trading trial the FCA has ever prosecuted. The proceedings were delayed by about four months after U.K. government cuts to legal aid resulted in a several of the defendants temporarily losing their counsel.

A spokesman for the FCA declined to comment. Lawyers for the five men, who have all pleaded not guilty, either declined to comment or didn’t respond to e-mail requests for comment.

The FCA has won 27 convictions for the offense since 2009.

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