Morgan Stanley has started severing ties with hedge fund founder Crispin Odey’s investment firm after 13 women — either employees or professional contacts — alleged the financier abused, harassed or, in some cases, sexually assaulted them and maintained a toxic work culture, according to a Financial Times report Thursday.
The U.S. investment bank is not alone. JPMorgan Chase, too, is also reviewing its prime broking relationship with Odey Asset Management, Bloomberg and the Financial Times each reported, citing people familiar with the matter.
And the Financial Conduct Authority, the U.K.’s leading financial regulator, is investigating the hedge fund, the Financial Times reported Thursday.
The regulator opened a probe into Odey Asset Management two years ago, a person familiar with the matter told the publication. The investigation initially was focused on nonfinancial misconduct, but shifted to corporate governance issues after Odey fired his executive committee in 2021, the source said.
The probe may again widen to address potential nonfinancial misconduct by Odey, the Financial Times reported Thursday.
"This is a rehash of an old article, and none of the allegations have been stood up in a courtroom or an investigation," Crispin Odey told Reuters by phone.
Odey was cleared of indecent assault charges by a British court in 2021.
The Financial Times’ article Thursday detailed Odey’s alleged treatment of women over the past 25 years. Sources said most of the incidents occurred between 1998 to 2021. Eight of the 13 women alleged Odey sexually assaulted them.
“Without standing up to him, he will do it again and continue doing it,” one source, identified only as Louise, told the Financial Times. “The number of known assaults is large enough now that we are able to validate each other’s stories and face him with the confidence needed to stop his vile behavior continuing.”
The Financial Times report encompassed interviews of more than 40 former employees of Odey Asset Management.
Morgan Stanley, JPMorgan Chase and Odey Asset Management declined to comment to the Financial Times. A law firm representing Odey said he “strenuously disputed” the allegations.
Odey, speaking to Reuters on Thursday, characterized Morgan Stanley’s move as “a massively quick reaction to an allegation by the FT.”
Partners at Odey Asset Management knew of Odey's alleged mistreatment of women as early as 2004, according to the Financial Times. That’s when a receptionist, Jae-Ann Maher, resigned and initiated a legal complaint against the firm.
In her resignation letter, Maher said she was “prone to receiving unwanted and unrequested sexual attention from Mr Crispin Odey” in the form of “massages, kisses, embraces and crude sexually suggestive comments.” The hedge fund’s executive committee formally investigated Odey’s behavior in 2020.
The FCA, meanwhile, said Thursday it is “unable to comment on individuals or specific firms.”
“We take allegations of nonfinancial misconduct seriously and expect firms to have adequate governance procedures in place that ensures allegations of misconduct are properly investigated,” the regulator said.
