The Department of Trade and Industrys investigation into John Cleggs reign at Wace has uncovered a wealth of insider share dealings in which an estimated 50m was plundered.


Dealings were conducted by the former Wace group chief executive and various members of his family during his eight-year term in charge of the pre-press services group.


The DTI inspectors were appointed in February of 1992 after Clegg, who built the firm into one of the worlds largest pre-press services group, sensationally quit in January of the same year following unfounded rumours of alleged IRA involvement, which subsequently led to a rapid decline in Waces share value.


The 400pp report on the investigation, which was conducted under section 442 of the Companies Act, centred on the share dealings of Wace and three of its takeover targets - Tinsley Robor, Parkway and European Colour.


From the outset, when Clegg and his family took an initial 23% stake in Wace in 1984, profits of tens of millions pounds were made, turning Wace into a global company.


During the DTI investigation, Clegg, his father and his uncle all fled the country, and were rumoured to be in Florida, Chicago and Australia, but their current whereabouts are unknown.


The report concluded that the Cleggs had made millions from insider dealing using various aliases and offshore bank accounts.


Many accounts were opened in false names, with Credit Suisse, Anglo Irish Bank and NatWest among those deceived.


Even though the investigation, which is reported to have cost 150,000, has taken nearly 10 years to reach a conclusion, the DTI has decided not to take any further action against the Clegg family.


A spokesperson for the DTI stated: Following completion of the report, a decision was taken as to whether it would be worthwhile and justifiable in cost to pursue those concerned given the likelihood that they were unlikely to return and trade as directors in the UK.


Some might say that the investigation should have been called off when it became apparent those involved had fled abroad, but then we would not have known the full extent of their dealings.


Wace was taken over by US rival company Applied Graphic Technologies last year.


Story by Andy Scott