City Dealer Claims He Was Sacked for Whistleblowing; CLIENTS WERE SOLD 'RUBBISH' SHARES, TRIBUNAL IS TOLD
Byline: PAUL SIMS
A WHISTLEBLOWING City share dealer was sacked after he complained clients were sold "rubbish" shares in failing businesses in order to boost his company's profits, an employment tribunal heard today.
Equity dealer Adam Harvey, 27, says bosses at City Equities knowingly tipped shares in financially troubled firms to its clients in order to make a quick return.
Mr Harvey claims the company bought shares at a discount price and then sold them to clients at a higher price, pocketing the difference. Clients were persuaded to sell reasonably performing stock to buy shares in failing stocks being sold by City Equities, the tribunal heard.
Mr Harvey also claims the firm tried to hide its dodgy dealing.
At Central London employment tribunal Mr Harvey says his firm did not act in the clients' best interest when tipping shares. He claimed the firm bought discounted shares in three companies - The Wigmore Group, Quiktrak and Advanced Technology - knowing they were in trouble, but tried to offload the shares on to its clients.
Trading in the three companies was subsequently suspended leaving the clients out of pocket, but this did not affect City Equities' profit, claims Mr Harvey, who earned [pounds sterling]80,000 a year. …