FSA fines stockbroking bosses £175,000

Thursday 29th January 2009

The FSA has fined two bosses of a “boiler room” style stockbroking firm for persuading customers to buy worthless shares.

Pacific Continental Securities (PCS) was shut down in 2007 and the City of London-based firm was formally liquidated yesterday, with chief executive Steven Griggs being fined £80,000 by the regulator. Former finance director, Charles Weston, was fined £95,000.

The two men have also been banned from the investment industry. Apparently, one law firm dealt with over 2,500 complaints concerning PCS during its time operating. According to angry clients, the stockbrokers’ staff had convinced them to sink millions of pounds into high-risk shares in small UK and US companies.

Director of enforcement at the FSA, Margaret Cole, commented: “Pacific Continental Securities treated its customers appallingly and Mr Griggs and Mr Weston must be held responsible for putting innocent customers at risk.

“It is especially worrying that no action was taken by PCS or its directors to stop customers from being misled or given unsuitable advice when buying shares, thereby depriving them of their savings.” Ms Cole went on to say.

The FSA has now asked the several thousand former clients of the stockbroking business to contact the Financial Services Compensation Scheme in order to claim compensation.