FSA and Treasury were told about 'bullying' at New Star

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The Independent Online

Former New Star fund manager Patrick Evershed raised his concerns about bullying at the firm with the FSA and the Treasury Select Committee, an employment tribunal heard yesterday.

Emails read out at the tribunal revealed Mr Evershed – who is claiming £1m for unfair dismissal – discussed raising issues with the "fraud squad" and "Scotland Yard". In one, Mr Evershed said he had been told by a friend, the Conservative MP Michael Fallon, that FSA staff were paid bonuses for maintaining good relationships with investment firms.

That evidence was used by New Star's lawyer Daniel Oudkirk to suggest that Mr Evershed has a history of using the press and politicians for his own gains. While cross-examining Mr Evershed, Mr Oudkirk told him: "The press was a tool you were not afraid to use."

Earlier Mr Evershed named a number of senior staff who he said were victims of bullying, including property fund manager Roger Dossett. He also said that boss John Duffield regularly called growth fund manager Stephen Whittaker "a moron and a criminal".

While Mr Duffield has been the focus of Mr Evershed's complaints, he also accused the chief investment officer Gregor Logan of being part of the bullying culture. "Gregor would try to humiliate me by mocking my predictions," he said.