A financial adviser has gone on trial at Exeter Crown Court accused of stealing his former boss’s database of clients, so he could use it to set up his own business.
Stephen Wales allegedly sent e-mails to himself from his old job on which he attached sensitive and confidential information. He is also accused of downloading an entire six gigabyte database onto a removable drive on his last day of work.
His former employer called in the police after finding that 30 clients had left his firm within a month of Mr Wales setting up his own business in Devon. Mr Wales, aged 35, of Torquay, denies fraud.
Sarah Vince, prosecuting, told the court Mr Wales worked for employer Jonathan Walker at his Pension Drawdown Company in Torquay from June 2008 until he left in October 2010.
The company has more than 400 clients and handles investments of £80m. Mr Wales signed a contract which prevented him removing any confidential information.
In June 2010 he was offered a pay increase from £26,000 to £40,000 when he became a Chartered financial adviser, but four months later he resigned.
Before he left, Ms Vince told the court he sent e-mails to his private address containing client data and on his last day created two zip files which enabled him to take the entire database away on a memory stick.
He started his new business on 12 October and by 22 November more than 30 clients had transferred away from Mr Walker’s company, taking a total of 57 pension plans with them.
Mr Wales told police he had only taken data such as forms which he could adapt for his business. He initially denied taking the database, but later said he had deleted it.
He also denies targeting Mr Walker’s clients, saying he had been inundated by people who he had dealt with while working at the other firm who wanted to move their business to his new one.
Mr Walker told the court some of the clients who left had been introduced as a block from another firm by Mr Wales and they had discussed whether they would move on to his new business, but not reached a definite agreement.
He said he had never given authority for any data to be removed or transferred and had started civil legal action after Mr Wales left to protect his firm and 11 employees.
Under cross examination by Mr Richard Crabb, defending, Mr Walker denied using criminal law to pursue a civil dispute.
He said: “I had a responsibility for data protection and had to report the breach. I told the data protection authorities and the FSA, who told me if data had been removed and not returned, it was a matter for the police.”
The trial continues.
