SFA expels two former Dillon Read men

Two former employees of Dillon Read Securities, including a compliance officer who tricked his employer into paying for part of his house extension, have been expelled from the Securities and Futures Authority's register of managers.

Clive Harris perpetrated the scam after he contracted a builder to help Dillon Read move office in November 1992 when he was a director of finance at the firm. He then contracted the same builder to extend his home at a cost of pounds 15,000, but only paid pounds 10,000 himself, adding the rest of the bill to Dillon Read's invoice.

Mr Harris's misconduct was only discovered almost four years later by another member of staff in September 1996. When confronted with the allegation, he resigned immediately and has since paid Dillon Read in full for the building work.

The SFA said yesterday: "By virtue of his action, Mr Harris is clearly no longer fit and proper to be registered." He has also been fined pounds 3,500 and required to pay pounds 2,750 towards the SFA's costs.

The second employee, Peter Paton, also resigned in September 1996 as a financial controller at the firm. After his resignation, Dillon Read discovered that during the period between February 1995 and January 1996 he had misappropriated pounds 4,600. Mr Paton had also repaid the firm in full.