Ex-Barclays director accused of passing insider tips to plumber

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A former Barclays director was accused by the U.S. of giving tips about future mergers and acquisitions to a plumber friend in exchange for cash and a new bathroom, an arrangement that went down the drain when the plumber snitched to the government.

Bloomberg News reports that Steven McClatchey, 58, passed the information to the plumber who used the tips to make 11 illegal trades from March 2014 to August 2015, according to a criminal complaint that was unsealed Tuesday in Manhattan federal court.

McClatchey, who was arrested this morning by FBI agents, faces conspiracy, wire fraud and securities fraud charges. The Securities and Exchange Commission identified the plumber as Gary Pusey, 47, in a related civil suit filed Tuesday against both men.

McClatchey and Pusey met in 2011 or 2012 at the Yachtsmen’s Cove marina in Freeport, New York, where they had identical-model fishing boats that they kept in adjacent slips, according to the SEC. McClatchey and Pusey became close friends, spending most Saturdays at the marina or, in cold weather, playing pool and watching sports in McClatchey’s renovated garage. McClatchey frequently told the plumber to "keep an eye on" particular companies that would soon have good news, warning him not to tell anyone, not even family, about the tips, the government said.

To access the complete Bloomberg News article hit the link below:

Barclays Director Accused of Trading Tips for New Bathroom

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