THE Financial Services Authority is to examine a new dossier of allegations about James Middleweek, the former analyst who sparked a year-long investigation into Collins Stewart Tullett, the stockbroker.
The FSA last week closed the investigation, having found no grounds that could justify disciplinary action. Middleweek, sacked by Collins Stewart in July last year, had suggested the firm was guilty of serious breaches of regulatory rules, including the misuse of price-sensitive information.
The latest development appears to turn the tables on Middleweek, since the new information raises questions about the analyst’s share dealings and his motives in making his accusations against Collins Stewart.
The dossier suggests Middleweek was at the centre of a share-tipping ring known as the Readers’ Wives — apparently a reference both to the pornographic magazine of the same name and to the claim that members of the circle held investments in their wives’ names.
Middleweek, who has moved to Australia, has denied any involvement, or any knowledge of the e-mails on which many of the allegations are based.
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The Sunday Times, which received the dossier anonymously some weeks ago, handed it to the FSA on Friday evening. A spokeswoman said: “We need to look at this to consider whether there is anything more we need to do.”
The dossier consists of an analysis of e-mails allegedly sent from Hotmail and other difficult-to-trace accounts to Middleweek’s father, David, a criminal lawyer in Manchester, to his wife, Emma, and a number of City investors. Those contacted by The Sunday Times have denied receiving the e-mails purportedly sent to them. Middleweek denies having used the jmiddleweek@hotmail.com address.
If the e-mails are false, the dossier amounts to a sophisticated smear against Middleweek. The e-mails cover the period from October 2002 to September 2003 and suggest that he began to consider moving to Australia long before his allegations against Collins Stewart became public, and that his move may have been prompted by dealings with Danny Hill, an investor who now lives in Perth. Hill also has a dispute with Collins Stewart, which he blames for losses on investments. Middleweek said he did not know Hill.
Terry Smith, chief executive of Collins Stewart, said he was not responsible for the dossier but was aware of its existence and some of the allegations in it.