A former partner at Cazenove, the blue-blooded stockbroker, has been charged with insider-dealing in shares in Macdonald Hotels before the Scottish leisure firm was taken private in 2003.

A former partner at Cazenove, the blue-blooded stockbroker, has been charged with insider-dealing in shares in Macdonald Hotels before the Scottish leisure firm was taken private in 2003.

The Financial Services Authority said Malcolm Calvert of Cobham, Surrey, who is 63, appeared yesterday at the City of Westminster Magistrates' Court, on charges of insider dealing contrary to section 52 of the Criminal Justice Act 1993.

Calvert, who retired in 2000 after a 39-year career at the bank, has been charged with 12 offences.

These include five counts of buying a total of 125,000 shares in Macdonald Hotels when he allegedly had inside information of a proposed management buy-out of the business.

The alleged offences were committed on or between July 15, 2003, and July 21, 2003.

The stock market-listed hotel group was taken private in a deal that completed in October of that year for £157m. It was led by executive chairman Donald Macdonald and backed by Bank of Scotland.

Calvert has been charged with seven other counts of insider dealing involving five firms.

After indicating a plea of not guilty, Calvert was remanded on conditional bail. The court declined jurisdiction and held that the case was suitable for trial on indictment. Proceedings were adjourned until September 11.

The criminal action is only the second such case involving the FSA. The regulator is keen to be seen to be tough on insider dealing, which is notoriously difficult to prove.