(November 15 – 10:55) – The Globe and Mail is reporting that a former employee is suing BMO Nesbitt Burns Inc. for wrongful dismissal alleging irregularities in the company’s futures trading.

The newspaper says, David Kennedy alleges that he informed his boss of “questionable practices” in futures trading on the Montreal Exchange but that no action was taken. In its statement of defence, Nesbitt denies any wrongdoing, suggesting that he came up with the allegations as a pressure tactic to get a bigger settlement package after he was fired on August 31, 1998.

Earlier this year, Nesbitt admitted to three rule violations in futures trading between May 5 and October 16, 1998, including failing to obtain the best price for clients and 59 trades conducted off the exchange floor. Nesbitt paid a fine of $154,000 and $58,000 in costs. The exchange found that a total profit of $76,850 resulted from the 59 trades done off the floor.
-IE Staff