Financial Watchdog Accuses Former Hedge Fund Manager of Victim Manipulation
The Financial Conduct Authority has leveled serious allegations against former hedge fund manager Crispin Odey, accusing him of attempting to manipulate a sexual assault victim into silence during an ongoing regulatory investigation. The explosive claims emerged during a court hearing where the financial watchdog detailed Odey's alleged efforts to discourage a former employee from cooperating with their inquiry.
Text Message Warning to Former Employee
According to evidence presented by the FCA, Odey sent a text message in January 2022 to a former employee whose breasts he had groped without consent in 2005. In the message, Odey warned that the Financial Conduct Authority might question her about him, suggesting the regulator was using her to further its vendetta against him and his hedge fund, Odey Asset Management.
The 67-year-old financier wrote in the text: "I'm truly sorry for embarrassing you so long ago but I do not think that it is reason enough to close down OAM and call me unfit and improper." He signed the message with "Cx," according to court documents.
FCA Lawyer's Scathing Assessment
Clare Sibson, the FCA's lawyer, presented a damning assessment of Odey's actions during cross-examination. She questioned Odey about the potential impact on the victim, asking: "Can you imagine what it might feel like for the victim of an historic sexual assault to be told by her assailant that a statutory authority was investigating the man who victimised her?"
Sibson asserted that Odey had been trying to manipulate this victim into silence and had very good reason to discourage her from providing her account to the financial regulator. She noted that the former employee had left Odey Asset Management in 2015 and might not have been aware of the FCA's interest until receiving Odey's text message.
Odey's Defense and Broader Legal Battles
During his testimony, Odey claimed he merely wanted to ensure the woman would "tell the truth" and was providing a warning that she might be approached by investigators. He stated: "I was merely saying to her ... I'm giving you a warning that you may be approached, because I don't know how broad or wide the investigation is."
The court appearance is part of a three-week case where Odey hopes to overturn the FCA's decision to ban him from the UK's financial services industry. The regulator has claimed he showed a lack of integrity by deliberately attempting to frustrate an internal investigation into sexual harassment allegations at his hedge fund.
Odey has previously accepted that he groped the woman without her consent in 2005, attributing the incident to being under the influence of sedatives following a root canal treatment. He maintains that the woman remained at the firm for eight more years and was "a friend of the firm."
Multiple Legal Proceedings and Fallout
The allegations against Odey extend far beyond this single case. The financier faces:
- A £79 million libel lawsuit against the Financial Times, claiming "very significant financial loss" from articles alleging sexual misconduct
- Civil personal injury claims from five women, including one rape allegation he denies
- Joint proceedings scheduled for June to address multiple civil claims
The sexual harassment allegations that emerged in summer 2023 ultimately led to Odey's removal from Odey Asset Management, which announced plans to close in October of that year. Odey has characterized himself as "a poster boy for the authority's agenda" and claims to be the victim of "a campaign by the authority to achieve my removal."
The hearing continues as the Financial Conduct Authority pursues its case against the former hedge fund manager, with significant implications for financial regulation and corporate accountability in sexual misconduct cases.
