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Ex-Barclays director accused by US of illegal tips to plumber

Police on Tuesday arrested a former director at Barclays Plc on charges that he provided inside information about impending mergers he learned about at the bank to a plumber. The US authorities said that the tips were used by Steven McClatchey to make $76,000 illegally.

Ex-Barclays director accused by US of illegal tips to plumber

The 58-year-old McClatchey was charged in a criminal complaint filed in Manhattan federal court with conspiracy, wire fraud and securities fraud after the plumber, Gary Pusey, on Friday pleaded guilty before the court and agreed to cooperate with authorities.

McClatchey worked at the British bank in its Manhattan offices from December 2008 to December 2015. He was arrested on Long Island, where he resides. The court, however, released McClatchey later in the day following a court hearing.

McClatchey's lawyer, Steven Kartagener, preferred not to comment on the matter. An attorney for 47-year-old Pusey also declined to comment.

Manhattan U.S. Attorney Preet Bharara announced the charges. Bharara has led an insider trading crackdown that has resulted in 102 people being charged and 78 being convicted since 2009.

the complaint and a related U.S. Securities and Exchange Commission lawsuit filed on Tuesday said that McClatchey tracked all potential deals involving the bank. He began tipping Pusey helping him to execute trades ahead of merger announcements involving 11 companies, including Forest Oil Corp and PetSmart Inc.

In exchange, huge amount of money was paid by Pusey to McClatchey, sometimes placing cash in a gym bag that McClatchey brought with him to a marina in Freeport, New York. He also provided free bathroom remodeling services to McClatchey.