Whistleblower 'hounded out'

JAMES Middleweek, the analyst at the centre of a bitter legal battle with his former employer Collins Stewart, has accepted he will never again work in the City and intends to leave for Australia before Christmas.

But Middleweek insists he will not back away from a £3m legal claim against his former bosses.

The 38-year-old, who flies to Australia next week with his wife and two children, would not rule out quitting Britain for good. But he told Financial Mail on Sunday he would be back to press his legal claim which is now set for trial in the High Court next autumn.

He said: 'My family and I are taking a well-earned break from the UK, but I am still looking forward to the hearings next year.'

Since launching the lawsuit against his former employer, Middleweek has been the subject of rumours concerning his professional and private life, none of which have been substantiated.

But regardless of the rumours or the outcome of his legal battle with Collins Stewart, he is unlikely ever to work in the Square Mile again. 'I can't say the job offers have been rolling in,' he admitted.

Middleweek's trip to Australia has prompted the Financial Services Authority to accelerate its own inquiry into his allegations of stock market abuses at Collins Stewart. The former analyst is to meet officials of the regulator's enforcement division in the next four days.

Collins Stewart sacked Middleweek in July for gross misconduct, claiming he was trying to blackmail his bosses with the allegations. Middleweek denied the blackmail claim and launched his case for unfair dismissal, claiming £3m in lost income.

The claim is so large it is being heard in the High Court and officials have set aside three weeks for the case, starting next October.

Meanwhile, Middleweek has also sent a dossier to the Financial Services Authority, detailing his allegations of market abuses at Collins Stewart and of an aggressive corporate culture overseen by bosses, including chief executive Terry Smith. Collins Stewart denies all the allegations and is contesting Middleweek's employment claim.

Shares in the broker plunged when Financial Mail first reported the legal battle in August, falling from 493p to 361p in just over two weeks.

Collins Stewart hit back by highlighting heavy trading in its shares as Financial Mail began investigating the row. In particular, attention focused on fund manager Jeremy Benjamin, a friend of Middleweek, who sold shares in Collins Stewart just two days before the row was made public.

After a preliminary inquiry into those trades, the Financial Services Authority is believed to have decided not to take its investigation further.

Collins Stewart has regained much of its value since its slump and shares in the broker closed on Friday at 434p.