Thursday November 14, 2024

We help secure High Court win concerning Ponzi scheme

The Joint Administrators of London Capital & Finance plc (LCF) and London Oil & Gas (LOG) have secured a substantial judgement against LCF’s former CEO, Andy Thomson, and others.

Ruling on a High Court claim in excess of £177.5 million, Mr Justice Miles found that Mr Thomson and his fellow defendants knowingly participated in fraud perpetrated against LCF bondholders and misappropriated significant sums.

LCF went into administration in 2019 having previously sold unregulated mini-bonds to investors, accompanied by misleading promises of return. The court found that the business had operated a Ponzi scheme with Mr Thomson deliberately and cynically procuring LCF to present itself to maximise sales, knowing that bondholders were given a false and misleading story. The court found that false representations were systematic and widespread.

The administrators will now be in a position where they can recover substantial sums from the defendants for the benefit of the creditors of LCF and LOG.

Speaking on behalf of the Joint Administrators of LCF, our Restructuring Advisory Partner David Hudson – who was involved with the investigation and a witness in court – said: “It’s heartening to see the court rule in favour of the Joint Administrators, delivering a positive outcome for those defrauded by LCF. We’re pleased to have played our part in analysing the companies’ practices and ultimately being able to prove the systemic deception.”