Matthew Devlin should have had it all. His marriage to Nina Pawlak, a rising star at a top PR company, placed the thrusting young Lehman Brothers salesman at the heart of New York’s social and financial scene.

But five years after their wedding was announced in the New York Times, their marriage is again in the news. They are at the centre of an insider trading scandal involving almost $5 million, an FBI sting, a Playboy centrefold, Cartier jewellery, a Porsche – and an extraordinary example of marital betrayal and deceit.

Mr Devlin, who more recently worked at Barclays’ wealth management business, pleaded guilty this week to various criminal and civil securities fraud charges brought by the Securities and Exchange Commission (SEC), America’s financial regulator, and the US Attorney-General.

Just four months after their wedding, Mr Devlin began stealing information from his wife, who worked for Brunswick Group, one of the world’s best-known financial public relations agencies, advising companies on top-secret deals.

He and his associates used this inside information to trade shares illegally, netting hundreds of thousands of dollars for the conspirators over a period at least four years.

Mr Devin told his associates that his 34-year-old blonde wife was a “golden goose”, according to records of FBI wiretaps.

He was paid for the tips in cash and items including a Cartier watch, driving lessons in a Porsche, a wide-screen TV, a Ralph Lauren leather jacket and a Barneys gift voucher.

Mrs Devlin, who had a baby three weeks ago and remains on maternity leave, is “devastated beyond words”, according to friends. Having been investigated by the SEC and FBI, she was found to be completely unaware of her husband’s treachery.

In the close-knit world of banking and financial PRconversations yesterday about the Christmas holidays and New York’s snow storm were interspersed with references to the case. One insider described the scandal as a “fascinating case of human betrayal”.

Mary Mulligan, Mr Devlin’s lawyer, said that the shamed banker “accepted responsibility for his conduct”. “He deeply regrets the pain he has caused his wife,” Ms Mulligan said.

Yesterday it was not clear whether Ms Devlin, who was made a partner of the firm a year ago, would return to Brunswick. Court documents allege that between March 2004 and July 2008 Mr Devlin passed information apparently gleaned from listening to his wife’s phone calls and studying her travel diary to his friend Jamil Bouchareb, a 27-year-old Miami beach restaurateur and financial speculator.

The tips covered as-yet unannounced financial transactions by at least 12 well-known, mainly American companies, including Alcoa’s $27 billion offer for rival Alcan and a $52 billion takeover of Anheuser-Busch by InBev. Mr Bouchareb is charged with having passed this confidential information to his girlfriend Maria Checa, a 1994 Playboy Playmate. Mr Bouchareb also allegedly gave tips from Mr Devlin to his Florida-based business partner Daniel Corbin, who then passed the information to his father, Lee Corbin, a New York attorney.

Mr Devlin also passed his wife’s confidential information to his friend Eric Holzer, a New York lawyer, and another Barclays employee, Frederick Bowers. At least two other men were also implicated. The scam was exposed after the SEC and other financial regulators noticed irregular trading patterns in some companies shortly before they announced transactions. Having obtained Mr Devlin’s cooperation – it has not been made clear how – the FBI, which collaborated with the SEC on the investigation, taped months of his conversations, building a case before arresting Mr Bouchareb and Mr Corbin in raids at their homes on Thursday morning.

Barclays bosses learnt of the sting operation on Wednesday, although it is believed that a few key members of the bank’s legal team were informed by the authorities. Brunswick was told of the bust at lunchtime on Thursday after Ms Devlin, who knew of the sting, was sworn to secrecy.

Daniel Corbin and Messrs Bouchareb, Holzer and Bowers have not yet entered pleas to their civil and criminal charges, although lawyers for Mr Bowers and Mr Corbin have made clear that they will fight the actions. Ms Checa and Lee Corbin face being sued for any gains they made from the trading.

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