He made the comments during his second day of testimony before the commission. Carballo said Group Financial Directors, Andre Monteil, Lawrence Duprey and Karen Gardier all expressed concerns to him about multiple "whistle blower" emails.
He said the emails were about regulatory issues and compliance with the Statutory Fund of the CL Financial Group.
Carballo said he found the emails to be "quite inquisitive" adding that he was concerned that person sending the emails was trying to find out what Clico would do to get around the rules concerning the Statutory Fund.
He said the directors felt that the emails were exaggerated. Carballo offered suggestions about the dangers of what the so-called whistle blower was doing.
"Let's say a copy of that whistle blower email got into the hands of a few EFPA holders who had significant investments in Clico and Clico Investment Bank...if those whistle blower emails did get into those hands and discussed issues that were not 100% true and were perhaps over exaggerated, it could have caused a sudden rush on deposit," he said.
Carballo also questioned Geoffrey Leid's relationship within the company and his authority to make major critical decisions.
"I did not think it was right and ethical for Geoffrey Leid to be Company Secretary, a Director of Clico and to be earning fees. I am not too sure that is right at all." He added that it was wrong for Leid to hold two positions in the group and trying to earn fees from companies with which Clico had a direct involvement.
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