Odey described as a ‘sex pest’ by former hedge fund chief executive, court told
Disgraced hedge fund manager Crispin Odey was called a “sex pest” and a “sociopath” by former Odey Asset Management chief executive, a court was told on Tuesday.
Tim Pearey said in an interview with the Financial Conduct Authority: “I think he’s a sex pest I’m afraid… I think he’s got a real problem.
“I think he finds it hard to control himself actually. I just find it inconceivable he could behave in such a way.”
Pearey, who resigned in 2022, told the watchdog that he realised “a bit too late” that Odey was a “sex pest”.
The revelation came on the first day of the legal battle between the regulator and Odey, in which the financier is fighting to overturn his £1.8m fine and ban from financial services.
The FCA claimed that Odey “repeatedly violated ethical norms”, when trying to prevent a disciplinary hearing into alleged misconduct.
In documents submitted to the court, Odey maintained that the actions he took as majority owner of hedge fund Odey Asset Management, were “ones he was fully entitled to take” after he dismissed two members of his executive committee prior to a disciplinary hearing, believing they would not conduct the process fairly.
Odey’s team argued that had he not taken these actions, the committee members “would have incorrectly and unjustly reached the conclusion that they had no option but to dismiss him” which would lead to “the closure of the firm”.
They claimed his “actions were reasonable” in the circumstances and that any risks or harm arising were outweighed by “the detriment” it could have caused the hedge fund, its staff and clients”.
Odey ‘plunged firm into governance crisis’
But the FCA arguments to the court claimed that to prevent a disciplinary hearing Odey used his powers as the majority shareholder to summarily dismiss the firm’s executive committee and appoint himself as the sole member.
The watchdog criticised the move as a “serious step” that “plunged the firm deeper into a regulatory and governance crisis”.
It resulted in the resignations of two of the three members of the dismissed executive committee, including chief executive officer Tim Pearey, head of research Lord Massey Roborough, and, in due course, head of compliance Jack Satt.
In court, the FCA’s lawyers said Odey had taken “an egregiously unethical position” by using his powers to sidestep governance structures at Odey Asset Management, claiming he showed a “reckless disregard”.
They went on to claim Odey “demonstrated disrespect” for members of the executive committee.
Simmons & Simmons report
The court also heard that an employee of Simmons & Simmons, the law firm appointed to investigate Odey’s behaviour in September 2020, had told the FCA that he had touched female staff members without their consent.
The Simmons & Simmons report identified at least 46 historical allegations of inappropriate conduct by Odey toward female employees between 2003 and 2020. This includes an allegation of sexual assault on a female employee at the firm’s premises.
In a discussion of the allegations, it was said that his behaviour was “not a Weinstein situation” but “might be likened to that of Ray Kelvin”, the former chief executive of Ted Baker who resigned in 2019 following allegations of misconduct.
Incidents described to the court involved Odey allegedly giving staff members massages, including one instance where he gave a staff member a shoulder massage before “groping her breasts”, later blaming a sedative he had taken earlier in the day.
Another incident described Odey allegedly asking a female member of staff to try on a skirt he bought for his daughter.
The FCA claimed staff members, in particular junior members, were not confident to speak up or escalate concerns due to not wanting to “ruffle feathers”, and that there was a “prolific” culture of sexual harassment at the firm, which was viewed as “part of the deal for working there”.
The regulator also claimed that Odey’s conduct had resulted in certain inappropriate behaviour towards female members of staff “being perceived as normal or acceptable” by some staff members.
During the three-week trial, set to conclude on 26 March, numerous former senior members of Odey Asset Management are expected to testify, with Odey himself scheduled to appear from 24 to 26 March and face more than 12 hours of questioning.
Odey denies the allegations.