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Bullying claims, death threat at centre of elite Sydney stockbroker’s lawsuit
The court documents read like they were from the script of The Wolf of Wall Street, only this million-dollar drama is set within the gleaming towers of Barangaroo where one of Sydney’s slick, fast-paced online sharemarket betting brokers is being sued by a former star employee in the Federal Court.
Juan Vargas, 38, claims he was one of CMC Markets’ best earners globally but was allegedly short-changed nearly $1 million in bonuses over two and a half years. He is also seeking $500,000 in damages, alleging he lost his job and had his life threatened after complaining about a new bonus scheme which capped how much he could earn.
Juan Vargas in Sydney on Friday.Credit: Edwina Pickles
Vargas alleges when he complained to CMC Asia Pacific head Matthew Lewis about the bonus, his life was threatened – a claim denied by Lewis and the firm, which declined to respond to questions put by the Herald about the case.
Colombian-born Vargas, who moved to Australia as a teenager and describes himself as “self-made”, was employed as a sales trader in CMC’s Sydney “alpha” team, which manages relationships with wealthy clients spending millions betting on the rise and fall of share prices.
According to Vargas’ statement of claim, on February 23, 2023, Lewis told Vargas in a “raised voice” if he complained over the new bonus scheme, including the imposition of a cap, Lewis would “end the employment, the career and the life” of Vargas.
CMC hired outside firm Riskology Consulting to investigate Vargas’ claims of bullying and harassment, but deny he was thwarted from exercising his “workplace right” to appeal against its findings, which did not substantiate his claims.
CMC originally refused his requests to share the report and witness statements. Its lawyers argued it was not “appropriate” to provide the “sensitive” documents given the allegations raised related to workplace conduct. Vargas has now been given access to the report.
Matthew Lewis is the head of CMC Markets in Asia Pacific.
In their defence, lawyers for CMC and Lewis deny Vargas was threatened, that he was not paid entitled bonuses, or that he received adverse treatment in breach of the Fair Work Act for complaining about his remuneration.
CMC claims it was Vargas who breached its professional behaviour and conduct codes on a separate, subsequent occasion with another co-worker, which resulted in him receiving a “warning letter” in August 2023. It said there were “no other reasons” why he was made redundant five months later beyond “the application of objective selection criteria” in which Vargas “obtained the lowest score”.
In one instance, Vargas claims the new cap resulted in a potential $400,000-plus commission from a big spending client being whittled down to less than $90,000. He also claims after he complained, other clients were taken from him, further reducing his potential bonuses.
Vargas finished up with CMC on Valentine’s Day this year after six and a half years.
“My single mother came to Australia for a better life than what we saw in Colombia,” Vargas told the Herald when asked about recent court orders instructing the parties to enter mediation. “Australia always represented a place where people got a fair go, regardless of their backgrounds. I went to Port Hacking High; I did not grow up with a silver spoon in my mouth.”
Vargas filed the lawsuit while still working with CMC and caused a stir when he personally served papers on Lewis at their swish Barangaroo offices on the afternoon of January 25, before the Australia Day long weekend.
In April, the Fair Work Commission conducted a conference and was “satisfied that all reasonable attempts to resolve the dispute (other than by arbitration) have been, or are likely to be, unsuccessful.”
CMC Markets was founded in England by the charismatic Rolls-Royce driving British billionaire Peter Cruddas, who, according to Forbes, “just wanted to make his mum proud” after leaving school in east London aged 15.
CMC Markets Founder Peter Cruddas in Barangaroo in 2023.Credit: Dominic Lorrimer
CMC offers online trading in shares, foreign exchange and CFDs (Contract For Difference) – a stockmarket betting product banned in the United States, on which the Australian Securities and Investments Commission imposed strict conditions in 2021.
CMC was previously sued when two clients alleged it sold “highly risky and unsuitable” CFDs to retail investors between November 2011 and April 2021. One applicant claimed to have become “consumed” with CFD trading and ultimately lost $226,000 in four years, while the second applicant claimed to have lost $270,000.
“There were different ways of doing the business. I know there is an extravagant side to it, but I didn’t want to be seen as some flamboyant broker. I stayed away from all that,” Vargas said.
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