There comes a time in every financial services employee's life when he or she will say to him/herself, "I've got a number of jobs around my house that require a plumber's touch. I could easily pay for all of these things out of my generous salary OR I could violate my employer and securities laws by passing material non-public information to a local piping artisan who will repay me with free labor around my home." Steven McClatchey (allegedly!) chose to go with the latter.
A former Barclays Plc director was accused by the U.S. of giving tips about future mergers and acquisitions to a plumber friend in exchange for cash and home renovations. Steven McClatchey, 58, who worked in the investment-banking division, told the plumber about 11 impending mergers and acquisitions from March 2014 to August 2015, the government said. The plumber wasn’t named. McClatchey and the plumber met in 2011 or 2012 at the Long Island marina where both dock their boats, according to the complaint. By 2013, they spent most Saturdays at the marina or, in cold weather, playing pool and watching sports in McClatchey’s garage. The plumber used tips from McClatchey to make $76,000 trading stocks including Questor Pharmaceuticals Inc., PetSmart Inc., Emulex Corp. and Omnicare Inc., the government said.