Ex-L&G trader to plead guilty A former equities sales trader at the investment arm of Legal & General has indicated that he will plead guilty in the UK financial regulator's biggest investigation into insider trading. Paul Milsom, 45, told Westminster Magistrates Court on Wednesday that he intended to plead guilty to one count of insider trading brought by the Financial Services Authority as a result of Operation Tabernula, an insider-trading probe that grabbed headlines in March 2010 when seven employees of institutions such as Deutsche Bank and Moore Capital were arrested. Graeme Shelley, who was one of those arrested at the time when he was a broker at Novum Securities, also appeared with Mr Milsom on Wednesday but gave no indication of a plea. Mr Shelley faces 28 counts of insider trading, the court heard. His lawyer, Mark Haslam from BCL Burton Copeland, declined to comment after the hearing. Five other defendants have already been charged in connection with Tabernula. None of those five have entered a plea and their case will not reach a jury trial until at least 2014. Mr Milsom intends to plead guilty to one charge that encompasses 28 separate instances of passing information to Mr Shelley between 2008 and 2010, the court heard. Mr Milsom, dressed in a dark suit, white shirt and striped tie, spoke only to confirm his name, age, address and indication of plea. The FSA alleges that the pair had an arrangement whereby Mr Milsom would tip off Mr Shelley of large trades he intended to place and which would likely move the market. Mr Shelley would then place contracts for difference - in the knowledge that the market in the shares, which included ITV, would move in a certain direction, it is alleged. The pair would then split any profit, with 40 per cent going to Mr Milsom. About £402,000 was made in this way, the FSA alleged. Both Mr Milsom and Mr Shelley were released on unconditional bail. Mr Milsom's case has been referred to Southwark Crown Court, while Mr Shelley must appear again at Westminster on February 27. Mr Milsom was arrested in February last year. An L&G spokesman on Tuesday referred the Financial Times to a statement the company released at the time, which said the alleged wrongdoing did not affect customers or the company's financial position.