After horses and the high life, Edward Hartman emerges at Caledonia

EDWARD Hartman has emerged in a new role overseeing funds on behalf of some of Australia’s wealthiest families.

EDWARD Hartman — the brother of convicted insider trader John Hartman who recently left his role as an executive with investment bank UBS in New York after emails emerged showing he and John had discussed attempts to fix horse races and buy drugs — has emerged in a new role overseeing funds on behalf of some of Australia’s wealthiest families.

The Australian understands boutique fund manager Caledonia Investments, founded by Mark Nelson, has thrown Edward a lifeline, making him managing director of its New York operation. Caledonia began life as a management fund for the wealthy Darling, Nelson and Vicars families, and is now responsible for managing about $2 billion of ­investments on behalf of private clients.

The Australian understands Edward has been in his new role since August. Caledonia did not respond to questions about the appointment yesterday.

Edward left his role as a managing director at UBS last November after emails between him and his brother were tendered in the committal hearing for John Hartman’s one-time friend Oliver Curtis, who is facing charges of conspiracy to commit insider ­trading.

Edward and John are the sons of well-renowned Sydney obstetrician Dr Keith Hartman, who is associated with some of the city’s most prominent figures.

John served 15 months in prison for insider trading while employed as an equities trader at Orion Asset Management.

He has since landed on his feet, taking up new role with Andrew “Twiggy” Forrest’s Minderoo Foundation in Perth, which manages philanthropic investments.

Last year, John turned star witness for the Australian Securities & Investments Commission in a case against his former school friend from Sydney’s Saint Ignatius College.

John claims he and Mr Curtis — a Sydney investment banker — made “millions of dollars” from a secret insider-trading account run by Mr Curtis on the basis of information provided by John in his role as an equities trader at Orion.

Mr Curtis pleaded not guilty and a trial date has yet to be set.

During last year’s committal hearing, lawyers for Mr Curtis cross-examined John about emails between him and his brother Edward, who was then a trader with UBS in Sydney in 2007-08.

The emails tendered to court discussed attempts by the two to pay off a “very high-profile jockey” to lose an elite horse race, as well as attempts by Edward to have John purchase him cocaine.

The emails revealed that Edward, who is also an amateur jockey with racing industry connections, asked his brother to set up a BetFair account in August 2008. The two planned to pay off a jockey, enabling them to win up to $100,000.

Edward wrote: “I have a way for us to make a lot of money ... Are you able to set up a BetFair account in someone else’s names? I have a very high-profile jockey that will have some very short-priced losers for us to lay. But nobody can know but you and me.”

The two discussed paying the jockey $10,000 for a $100,000 win. John told the court he did not think the fix ever took place.

The emails also show that Edward would regularly ask his brother to give him credit for work being done between Orion and UBS, attributing him with “tags” for stock purchases.

In another email in November 2007, Edward wrote: “I love f**king over private clients. Let’s go get a bottle of champagne.”