Farzim Nazari, the chief commercial officer of London-based trading provider CMC Markets (LSE: CMCX), has been accused of conspiring to rig maintenance and refurbishment contracts of CMC’s buildings, worth more than $2.6 million.
Farzim is currently suspended from work while the investigation continues as the actions identified in the indictment raise additional concerns about his practices.
Also charged is Emma Brassington, a former Sydney employee, who the spread better’s chief says has benefited from the scheme.
CMC CEO Peter Cruddas has formally accused Nazari and Brassington of colluding to inflate the cost of a wide range of contracts, including tenders for a renovation project at his home.
World's Biggest Vessel Opens Gates for 2019 Coinsbank Blockchain CruiseGo to article >>
Papers filed in a London court in September, allege that the scheme, which CMC claims spanned roughly for months, involved phony and inflated invoices for construction contracts and undisclosed kickbacks that were funneled through Nazari-recommended builders.
Cruddas said he was granted a court order last month to search the defendants’ emails as the allegations are compelling in nature and provide a basis for suspension. He added that an initial review revealed that the scale of the allegations was shocking and that his company had been ripped off by avaricious employees.
CMC also won orders freezing Nazari and Brassington’s assets.
The company further alleges that the duo “have colluded to make secret profits out of relationships between CMC and its contractors and sought to induce CMC to enter contracts with entities connected to them.”
“Absent an honest explanation, these secret practices constitute breaches of Mr. Nazari’s duties to CMC and relevant CMC Group companies; and also give rise to claims against Ms. Brassington herself for conspiracy and/or dishonest assistance,” CMC added in court filings.