Post by Mousey on Feb 20, 2024 13:00:20 GMT
LCF raised £237m by selling some 16,000 ‘bonds’ to over 11,000 members of the public. Marketing material talked of “extensive due diligence” and that “the loans were fully secured”.
The reality was very different – security was in fact said to be “valueless or worth a small fraction of the intended value” having been invested in businesses which “were not carrying out revenue generating activities“. Large commissions were taken by those connected with the company.
Written submissions by Stephen Robins KC describe LCF as being “…a Ponzi scheme from the outset"
In this claim brought by the company and its joint administrators it is said that several people, including Michael Andrew Thomas, 50, the former CEO of the company “was knowingly party to the fraudulent carrying on of business of LCF” meaning they are “liable as a knowing recipient in respect of all monies paid from LCF in breach of fiduciary duty and their traceable proceeds which were received by him“.
I attended the first day of the trial yesterday and have written about the claim - including a link to 300-pages of court documents - on my blog.
Read more here.
The reality was very different – security was in fact said to be “valueless or worth a small fraction of the intended value” having been invested in businesses which “were not carrying out revenue generating activities“. Large commissions were taken by those connected with the company.
Written submissions by Stephen Robins KC describe LCF as being “…a Ponzi scheme from the outset"
In this claim brought by the company and its joint administrators it is said that several people, including Michael Andrew Thomas, 50, the former CEO of the company “was knowingly party to the fraudulent carrying on of business of LCF” meaning they are “liable as a knowing recipient in respect of all monies paid from LCF in breach of fiduciary duty and their traceable proceeds which were received by him“.
I attended the first day of the trial yesterday and have written about the claim - including a link to 300-pages of court documents - on my blog.
Read more here.
