FSA closes key investigation into stockbroker

The much-reported investigation kicked off after CST contacted City of London police alleging that a former employee, James Middleweek, tried to blackmail the company for some £2.4m on the agreement he would not then spread a “draft report” into alleged regulatory breaches at the company. Shares tumbled last summer as the company was forced to bring in outside lawyers to conduct an internal investigations into the alleged findings made by the employee. CST says that investigation found “the evidence did not substantiate Mr Middleweek’s allegations of serious regulatory misconduct”. ...