Dodgy broker duo who lost clients £70 million are banned

Up to 4500 private punters lost up to £70 million between them when they were pushed into dodgy shares by Pacific Continental Securities, which went bust in the summer of 2007.

The firm, once dubbed "worst investment firm of the year", was the cause of hundreds of complaints to the Financial Ombudsman.

Its chief executive Steven Griggs and finance director Charles Weston were today banned and fined £80,000 and £95,000 respectively by the FSA. The City regulator also said it had discovered clear links between Pacific Continental and a well-known individual linked to illegal boiler-room share frauds. Griggs and Weston misled the FSA over their relationship with this individual, known as "Mr A".

Pacific staff, who came and went rapidly, were taught to use an internal sales manual known as "the bible". This contained scripts to handle clients who objected to a share purchase suggestion.

In one case, when a customer says he wants to consult his wife, the salesman responds: "If you want me to call you back so you can ask your wife if you can buy the stock, I'll ring mine and see if I can sell to you."

Another, who wants to watch a share before he invests in it, is told: "I bet you don't watch half the stocks you own, let alone stocks you don't...No one ever made money watching stocks."

Punters will be paid compensation by the Financial Services Compensation Scheme up to a maximum of £48,000. But the cost of the scandal will be borne by other stockbrokers and financial intermediaries, who will make a one-off payment into the compensation scheme of £40 million on top of this year's annual levy of £8 million.