Norwich Union in 'sex pest' battle

THE staid world of insurance is about to be shattered by allegations that a director harassed female employees over several years. The allegations centre on Simon Embley, 43, the £200,000-a-year boss of estate agency Your Move. Many of the claims have been seen by Financial Mail alongside an admission from Embley's former superiors at insurer Norwich Union that his behaviour was 'at times lewd, unbefitting and embarrassing'.

The row is set to erupt into a legal action that is likely to drag both companies into damaging revelations. It also suggests that Norwich Union bosses were prepared to overlook Embley's alleged misconduct to keep the sale of Your Move to Barclays Private Equity on track.

In a business such as estate agency, people are the major asset. Barclays was ready to pay £42m to Norwich Union for the operation, a price that might have been jeopardised had the buyer been aware that a cloud hung over a senior executive - Embley - who had been disciplined while the sale was going through.

The suggestion that the culture of the Your Move business could have been tainted by inappropriate behaviour by top bosses could also have altered Barclays' view of its purchase.

Norwich Union and its former subsidiary Your Move are being pursued jointly for £1.52m by Richard Nuttall, a former £200,000-a-year director of Your Move claiming unfair dismissal.

Nuttall was accused of sexually predatory behaviour towards a woman colleague at a party in October 2003 and again in December.

The key plank of Nuttall's defence is the fact that his boss, Embley, had himself been disciplined on several occasions for misconduct. Much of this misconduct was of a sexual nature and spanned several years, according to Nuttall. Embley had enjoyed a high-flying career at Norwich Union in the Nineties. By 2001 he was given the role of running the estate agency. At that time it had 330 branches and employed 3,000.

And that is where the trouble seems to have started.

A document from Nuttall's lawyers sent to Norwich Union in February this year sets out a litany of drunken, louche behaviour, with Embley apparently central to every episode.

Since mid-2001, Embley is alleged by Nuttall to have behaved improperly toward junior female employees on numerous occasions, frequently at Norwich Union-sponsored parties or in the company's staff apartments in the West End of London and central York.

The response from Norwich Union finance director Jim Newman, made in writing direct to Nuttall in May, was surprising. He confirmed that Norwich Union's top bosses were aware of problems with Embley's behaviour. He made it clear that directors had investigated Embley's conduct as long ago as 2001.

Though Newman's response did not confirm any of Nuttall's allegations in detail and refuted others, it acknowledged evidence of significant problems around the culture and management of the business.

One episode happened in July 2001 at a Norwich Union jamboree hosted in the exclusive Lensbury Club in Teddington, south-west London. Embley was alleged by Nuttall to have propositioned more than one colleague in a marquee.

Newman said: 'As a result of investigation into your complaint against Simon (Embley), certain professional and behavioural issues in relation to Simon and his conduct have come to light ... including matters in relation to behaviour at the Lensbury Club in July 2001.'

He said evidence about Embley from other staff and witnesses gave 'cause for concern around unacceptable and inappropriate behaviour'.

Embley's most recent caution, a final written warning after a disciplinary process in May, related to an episode in 2003 when he was alleged to have made lewd suggestions about a colleague's body. Embley, married but estranged from his wife, lives with his partner Linda Knight in a six-bedroom barn conversion in Hitchin, Hertfordshire. The property is on the market - through Your Move - for £899,995.

Norwich Union and Barclays refused to comment. Newman said: 'Each party's solicitors have been working on trying to resolve this dispute for some time.

'Under the Data Protection Act we cannot and would not disclose personal details of existing or former members of staff. We do not comment on any individual aspects of business transactions and this includes the sale of Your Move.'

Embley, in Spain on business, said he was 'livid' that Nuttall had contacted Financial Mail. 'I have been categorically told by Norwich Union and its advisers not to comment or be drawn on this issue,' he said.

'This is not about me, it's about him. He went through a disciplinary process and was dismissed.

'I've been put through a period of deep investigation by the company and 99% of the allegations have been thrown out as complete and utter fiction. Many of the allegations are absolutely spurious. He hasn't got a case. The drinking culture he talks about, he knows very well himself.'

Embley refused to respond to any questions about specific allegations made by Nuttall.