Author Archives: Daniel Cloake

SRA urged to take action as we reveal solicitor has ‘purposely frustrated’ investigation

Solicitor Andrew Jonathan Milne delayed an official investigation into his alleged professional misconduct by overwhelming the regulator with complaints and threatening them with two injunctions seeking to prevent them from taking action, the mouseinthecourt can exclusively report.

Stratford Youth Court: Tower Hamlets drug dealer found guilty of assaulting police officers

In court the teenager sat slumped in his seat, eyes fixed on his feet. In June 2024 he had been a different figure entirely: shouting abuse, thrashing against officers and, according to them, lashing out with kicks and a deliberate stamp.

Charge dropped as police no-show and 14-point-licence-holder avoids disqualification

A trial for alleged careless driving is cancelled at Stratford Magistrates’ Court after the only witness, a police officer, fails to attend court, whilst a man with dodgy brakes avoids disqualification after pleading exceptional hardship.

Sinking Ship: Lendy’s founders knew collapse was coming – “The company is bust, the model doesn’t work”

A candid email sent between the two co-founders of the failed peer-to-peer lending firm Lendy, which anticipated impending insolvency, was sent over 14 months before the firm collapsed, the mouseinthecourt can exclusively report.

182 Lendy investors have died waiting for justice as administration enters 73rd month

Members of the public who had collectively invested £152m in so-called peer-to-peer loans facilitated by the firm Lendy Ltd are still waiting for a resolution following the company’s collapse in 2019, as a report says the administration will now last at least 8-years.

FCA “deliberately and negligently” broke FOI laws, then sacked the whistleblower, Employment Tribunal told

A former manager at the Financial Conduct Authority has alleged that he was fired after blowing the whistle on “a number of matters of serious wrongdoing” relating to the treatment of Freedom of Information Act requests, and that his manager conspired to get rid of him when he raised concerns, the Employment Tribunal has heard.

Lendy Auditors “Severely Reprimanded” and fined after breaching regulations

The auditors who signed off the accounts for the failed peer-to-peer investment firm Lendy have been hit with a £180k penalty after intervention by the Institute of Chartered Accountants for England and Wales, the mouseinthecourt can exclusively report.

Further information released in £15m Lendy Auditors claim

A litigation firm pursuing a £15m High Court claim against auditors Moore Stephens LLP, said to have caused losses to retail consumers who used the failed investment firm Lendy, have filed a 30-page-document with more information about the claim, the mouseinthecourt can exclusively report.

Married couple hit by £500k bill as company funds used for “personal expenses”

The High Court has found that a husband acted unlawfully after using company funds to pay £150k of personal expenses, and that he improperly paid his wife company money when he knew the firm was insolvent. The pair may ultimately have to pay almost £500k after falling foul of strict costs rules.

‘Don’t blame the directors … the auditors should have audited!’ – Lendy court doc says

A litigation firm pursuing a £15m High Court claim against auditors Moore Stephens LLP has denied that its “case is vague, embarrassing and/or impossible for the Defendant properly to understand” in a court document exclusively obtained by the mouseinthecourt.

Solicitor charged with stalking

Following an investigation by the Metropolitan Police Andrew Jonathan Milne, an SRA regulated solicitor, has been charged with the offence of stalking contrary to section 2A of the Protection from Harassment Act 1997. Milne attended Thames Magistrates’ court on Thursday, 9th January 2025. He pleaded not guilty and a trial date was set for 16thContinue reading “Solicitor charged with stalking”

Lendy auditor: ‘We made mistakes, but blame the dishonest directors’, defence statement says

Auditing firm Moore Stephens LLP has robustly defended a £15m High Court claim which alleged they acted “negligently” and with a lack of “professional scepticism” when they signed off the accounts of the now failed peer-to-peer lending firm Lendy.

FundingSecure: £888k shortfall in protected client account in January 2019, court documents reveal

One of the joint administrators of the failed peer-to-peer lending firm FundingSecure has told a court details of exactly how much money was missing, and when, from what should have been a ringfenced bank account.

FundingSecure – representative lender appointed in £500k Quistclose claim

A judge has approved the appointment of a single person to represent the interests of 2,148 ‘innocent investors’ caught up in the FundingSecure Quistclose fiasco, in which a disgruntled creditor of the failed peer-to-peer lending firm FundingSecure has alleged its £500k investment was misappropriated and should be returned.

Solicitor suggesting Sainsbury’s shoplifting slander specifies seriously substantial spend

The High Court has approved a cost budget of £100k a side in a dispute between the national supermarket Sainsbury’s and a solicitor who says he was slandered by a security guard who apparently shouted “you are a shoplifter….you should be in jail” when walking out the store.

Solicitor makes even more “scandalous allegations”, High Court told, as it’s ruled he doesn’t have to pay security for costs

An SRA-regulated solicitor, who had previously told a court that this humble blogger had attacked him outside a court building leaving him “close to death“, has deployed further “scandalous allegations” in a signed witness statement, the High Court has been told. Examples of the “baseless assertions and commentary“, said to be in a recent witnessContinue reading “Solicitor makes even more “scandalous allegations”, High Court told, as it’s ruled he doesn’t have to pay security for costs”

London Capital Finance Trial begins

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 investedContinue reading “London Capital Finance Trial begins”

HMCTS did consult on ‘seriously inaccurate’ public guidance document, FOI request reveals

An HMCTS ‘guide for members of the public’ on ‘How you can attend or access courts or tribunals’ was criticised by the mouseinthecourt as unhelpful, devoid of any tangible detail, and in some cases just plain wrong. The Courts and Tribunals Observers’ Network described the document as paying “lip service to the principle of openContinue reading “HMCTS did consult on ‘seriously inaccurate’ public guidance document, FOI request reveals”

Lendy: 20% of borrowers failed credit policy checks but were still given loans, confidential report reveals

A review of the Lendy loan book by insolvency experts Duff and Phelps, published in February 2018 shortly after the FCA found “vital” failures, has revealed a smorgasbord of weaknesses at the now insolvent peer-to-peer lending firm, with members of the public set to lose millions. The confidential document, which says it “must not beContinue reading “Lendy: 20% of borrowers failed credit policy checks but were still given loans, confidential report reveals”

Tribunal judges say no change needed in consultation on open justice

A recent consultation by the Tribunal Procedure Committee on non-party access to documents has concluded that no change is necessary, an FOI request made by the mouseinthecourt has revealed. This is despite an acknowledgement that there is no rule expressly providing a right of access by third parties, unlike the Civil Procedure Rules (CPR 5.4C)Continue reading “Tribunal judges say no change needed in consultation on open justice”

Solicitor sent “disgraceful and inexcusable” communications in £40k property dispute, court finds

SRA-regulated solicitor Andrew Jonathan Milne has been told he must sell a block of flats in North Wales after the existing leaseholders were not offered the chance to buy the building first, the county court has ruled. The judge has also reported Milne “to the Solicitors Regulation Authority for consideration and, if appropriate, investigation” afterContinue reading “Solicitor sent “disgraceful and inexcusable” communications in £40k property dispute, court finds”

Fine words – but new HMCTS public guidance falls short

“fine words butter no parsnips” said Lord Justice Toulson in his infamous opening paragraph of a judgment on open justice.  But as HMCTS publish ‘a guide for members of the public’ on ‘How you can attend or access courts or tribunals’ the mouseinthecourt criticises the new guidance as unhelpful, devoid of any tangible detail, andContinue reading “Fine words – but new HMCTS public guidance falls short”

Solicitor made “scandalous allegations” of attack by blogger which were “palpably untrue”, court told

SRA-regulated solicitor Andrew Milne claimed in a signed witness statement that not only did the defendants in a high court case he’s personally pursuing arrange for him to be attacked and that he “nearly died” — but that it was this humble blogger that did it!

FundingSecure “misrepresented” £650k loan, Financial Ombudsman secretly ruled

The peer-to-peer lending firm FundingSecure was ordered to refund an investor after making findings of misrepresentation and unfairness — But the platform entered administration before the investor could be compensated and the decision notice published.

Lendy: FCA ordered loan book review in 2017 after identifying “vital” failures

A senior associate at the FCA said in a confidential letter that “a number of weaknesses were identified [at Lendy] around the accuracy and quality of information” provided to retail investors some 10 months before the city regulator gave the ultimate seal of approval in the form of full authorisation. It took almost two yearsContinue reading “Lendy: FCA ordered loan book review in 2017 after identifying “vital” failures”

Lendy director ‘borrowed’ £350k from client account, 2016 FCA report reveals

A “strictly private and confidential” letter, exclusively seen by the mouseinthecourt, shows that the city regulator was aware, some 32-months before the FCA shut the platform down, that then co-director Tim Alastair Gordon, 44, had “borrowed” £350k from the company client account.

Submissions relating to the call for evidence concerning open justice

In 2022, the Justice Select Committee began examining the effects of digitisation on the courts, the media and open justice. This concluded with the publication of its report – Court Reporting in the Digital Age. The MOJ launched a call for evidence which concluded in September 2023. Here are the written submissions made by the mouseinthecourt.

Inside the Court of Protection Rule Committee

After lengthy correspondence the Court of Protection Rule Committee have released their meeting minutes to the mouseinthecourt. The committee was described by the then vice-president Mr Justice Hayden as “the operational spine of the court“. They provide a fascinating insight not only into being able to see what was discussed but also conversely what isn’t.

Lendy: Confidential 2017 FCA report reveals catalogue of concerns

A “confidential” letter sent from a senior associate at the Financial Conduct Authority has revealed that the city regulator was aware of an astonishing number of detailed concerns about failed peer-to-peer lending firm Lendy in June 2017. It took almost two years after the date of this letter before the FCA finally pulled the plugContinue reading “Lendy: Confidential 2017 FCA report reveals catalogue of concerns”

FundingSecure: Investors angry as FCA close investigation

Members of the public who invested in the failed peer-to-peer lending company FundingSecure, who stand to lose millions of pounds as a result of lax business practices, have expressed “total, complete and utter ANGER” after the FCA conclude their 5-year-investigation – with no public action taken.

‘We know her best’ – family members disagree with the litigation friend

A judge in the Court of Protection has set directions for trial after a dispute emerged between a so-called ‘litigation friend’ and family members.  This was a well-attended hearing with the front row consisting of barristers representing the Local Authority and P’s litigation friend, along with P’s daughter in law and her husband appearing inContinue reading “‘We know her best’ – family members disagree with the litigation friend”

Lendy director released from freezing injunction

Tim Alistair Gordon, 43, one of the two former directors of the failed peer-to-peer finance firm Lendy Ltd, has been released from a freezing injunction, the mouseinthecourt can exclusively reveal. The freezing injunction was imposed after accusations emerged that Mr Gordon, along with fellow director Liam Brooke, 40, had misappropriated company funds worth £6.5m viaContinue reading “Lendy director released from freezing injunction”

Judge tells jury: The FCA are not on trial [Day 18]

The judge in the Collateral trial that alleges two brothers misled thousands of investors by claiming to be authorised by the FCA has told jurors the authority is not on trial, a court heard. Accusations levelled at the Financial Conduct Authority suggested they engaged in a “face-saving exercise” as they failed to adopt a “robustContinue reading “Judge tells jury: The FCA are not on trial [Day 18]”

FCA admits they “left the window to the car open and someone was able to reach in”, jury hears [Day 17]

Any FCA case worker who “knew their onions” should have spotted Collateral’s name change on the interim permission register, jurors were told.  The 12 men and women deciding the fate of the former Collateral brothers were told their excuses were “nonsense” and “invented”, according to the prosecution. While the two defendants’ representatives tried to convinceContinue reading “FCA admits they “left the window to the car open and someone was able to reach in”, jury hears [Day 17]”

Jurors given ‘route to verdict’ in Collateral Fraud trial [Day 16]

The younger brother and former director of Collateral was the “driving force” and is as responsible for fraud as his eldest brother who changed the company’s name on the Financial Conduct Authority’s interim permission register, a court heard. Jurors will be asked to consider “family dynamics” and the relationship between the two brothers as theyContinue reading “Jurors given ‘route to verdict’ in Collateral Fraud trial [Day 16]”

Criminal Procedure Rule Committee change rules promoting open justice

In the same month that the Ministry Of Justice wants “to hear your ideas on how the government can reinforce and enhance open justice in today’s era” the procedure rule committee responsible for the criminal jurisdiction is removing rules allowing note-taking by laptops and live-tweeting by legal commentators.

Peter Currie – “I wanted everything to be correct, above board.” [Day 15]

The director of the failed peer to peer lending firm Collateral, accused of fraudulently changing the name of his company on the FCA interim permissions register, has told jurors that he “never thought for a minute what I’d done was wrong” adding that “what I’d done has traumatised me“

The FCA “don’t fully understand P2P as a market”, jurors hear [Day 14]

As one of the Currie brothers enters the witness box it’s revealed that as early as October 2016 the FCA had concerns that the peer-to-peer finance firm Collateral was being “potentially misleading” in aspects of its work. Jurors also heard of Peter Currie’s “devastation” when the FCA finally took action in January 2018.

Collateral Director tells jury: Rishi Sunak wants compensation for investors [Day 13]

The former director of Collateral has claimed Prime Minister Rishi Sunak complained to the Financial Conduct Authority requesting compensation for investors if the brothers who led the company are not convicted, a court heard. More than 340 letters of complaint and 15 MPs representing their constituents have requested the FCA investigate their handling of theContinue reading “Collateral Director tells jury: Rishi Sunak wants compensation for investors [Day 13]”

Collateral Director: “We are in court now as a bit of deflection of blame from the FCA”, jury hears [Day 12]

One of the directors of Collateral admitted administrators paid him a sum intended for staff wages and he kept it as a “part payment” of what he was owed by the company, a court heard. Andrew Currie, 57, accused of having the company pay out over £370,000 to him before it was forcibly closed, saidContinue reading “Collateral Director: “We are in court now as a bit of deflection of blame from the FCA”, jury hears [Day 12]”

“The FCA was as clear as mud”, Collateral director tells jury [Day 11 PM]

One of the directors of Collateral charged with fraud insists he always wanted the business out of the hands of the FCA, claiming: “I’m not a regulatory person“. Andrew Currie, 57, accused of having the company pay out over £370,000 to him before it was forcibly closed, also claims he lost the invoices for theContinue reading ““The FCA was as clear as mud”, Collateral director tells jury [Day 11 PM]”

Collateral directors took £763k out of company after FCA identified breach, jury told [Day 9]

Collateral paid director Andrew Currie’s girlfriend’s company £275,000 just before the company went into administration which led to purchases of properties in Lancashire and Spain, a court heard. The Financial Conduct Authority investigated bank statements that found where monies went in the days just before lending was officially stopped, jurors were told.

Collateral advisor told directors: “We are not going to be able to fob this off”, jury hears [Day 8]

The two directors of a firm accused of lying to their investors to claim they were authorised by the FCA were told by their own lawyer they would have to be “18 years old” to convince anyone they had made an honest mistake, a jury was told.

Register change “would have been obvious to any case officer if the FCA had done their job” jury told [Day 7AM]

Defence silk for Peter Currie grills FCA caseworker Robert Cooper on the regulator’s knowledge of problems with the Collateral (UK) platform, and what’s said to be its failure to act.

Collateral Legal Advisor: The FCA “passed us from pillar to post throughout the process” [Day 7PM]

A compliance director for the failed finance firm Collateral UK Limited took the stand to explain the difficulties the company had when dealing with the Financial Conduct Authority. “There didn’t seem to be a proper handover process when it moved from one caseworker to the next” was one complaint the jury heard.

FCA: We had ‘access’ to the Collateral platform since October 2016 [Day 6]

An FCA case worker, in his first afternoon in the witness box, has confirmed that the FCA was given ‘access’ to the Collateral platform in October 2016, and had been given a copy of the company’s loan book. Concerned were raised that there appeared to be links between borrower companies and the Curries themselves.

FCA failed to pick up on false register entry for 22 months, jury told [Day 5]

A jury at Southwark Crown Court has heard statements from members of the public, including a retired chartered accountant, who say they only invested using the platform because of its apparent FCA authorisation. The FCA claim the platform only appeared on the FCA register after a director fraudulently changed an unrelated company’s entry, a mistakeContinue reading “FCA failed to pick up on false register entry for 22 months, jury told [Day 5]”

Lendy launches breach of contract claim in £7m Homer & Mutton Row loans fiasco

The Joint Administrators’ of the failed peer-to-peer finance firm Lendy Ltd have in the last few days filed a breach of contract claim against Lee Baron Limited, a specialist property management company based in London, the mouseinthecourt can exclusively reveal. Lendy litigation is a lot like a London bus as this site broke the newsContinue reading “Lendy launches breach of contract claim in £7m Homer & Mutton Row loans fiasco”

Concerns raised over function of Online Procedure Rule Committee

As part of an ongoing project looking at the various rule committees that govern the processes within our justice system a number of concerns have come to light about the new Online Procedure Rule Committee (OPRC). With the Shadow Minister for Justice using phrases like ‘totally inadequate’ and ‘potentially weak‘, and top Judge Mr JusticeContinue reading “Concerns raised over function of Online Procedure Rule Committee”

Unbolted: Application to join corporate P2P lenders to claim fails

In 2016, Mr Andrew Jonathan Milne, described in court papers as “an experienced practising solicitor in the City of London”, took out a series of crowd funded loans facilitated by the peer-to-peer lender Open Access Finance Ltd trading as Unbolted. Behind these loans were 612 ‘unique lenders’ within which at least 604 were ordinary membersContinue reading “Unbolted: Application to join corporate P2P lenders to claim fails”

Trustee was not permitted to add penal notice to order without approval, High Court finds

Licensed insolvency practitioner Edward Avery-Gee, of firm CG Recovery, was not entitled to add a penal notice to a Court Order without the Court’s permission, a High Court Judge has found. Mr Avery-Gee was acting as a Trustee in Bankruptcy in the matter.

Mortgage broker was in “cahoots” with borrower as secret commission defence fails, court rules

The County Court has granted the failed Peer-to-Peer lender FundingSecure possession of an East London flat, and a money judgment of some £200k, after rejecting a borrowers claim that their mortgage broker had been bribed with a so-called secret commission.

Justice Committee report – A blogger responds

“The Justice Committee has warned that the court system needs to do more to support open justice in the digital age“ Reads the opening line on the publication page of the report ‘Court system failing to support public understanding of justice system‘, which was published yesterday. On the whole it is a great report andContinue reading “Justice Committee report – A blogger responds”

FCA v London Property Investments trial – Judge doing a “little bit more than crossing T’s”

A High Court Judge held a mopping up hearing earlier today to clarify issues following a trial in May 2022. The mouseinthecourt has previously covered days 1 & 3 of this action by the Financial Conduct Authority against London Property Investments (UK) Limited and its directors.

FS Secret Commission Broker needs to “wake up and smell the coffee and realise their neck might be in the noose”, court told

A procedural hearing held in Central London earlier today has revealed a complicated web which looks set to be unravelled at a 5-day-trial, expected to begin on October 31st. In May 2022 the mouseinthecourt exclusively reported on the failed P2P company FundingSecure facing a new threat over an alleged ‘secret commission’ payment.

“I have to tell you something which may well come as a shock” says Court of Protection Judge

“I have to tell you something which may well come as a shock” is a sentence that no mother would wish to hear, and certainly not from a Judge when sat at a hearing in the imposing Royal Courts of Justice. What was revealed was a shock to me too.

Judge delivered “fatally flawed” decision in Art Loan fraud recovery, Court of Appeal told

A High Court judgment made in favour of defrauded members of the public who crowdfunded loans to a disgraced art dealer was “an impermissible extension of the Court’s jurisdiction” and should be quashed, three senior Judges have been told.

Custody Time Limit Extension approved at Snaresbrook

“In case you haven’t been informed I’ve had a notice from both the solicitors and in fact from your counsel, they won’t be attending today, no disrespect to you, they are supporting an action by the CBA in their dispute with the government. “The dispute has nothing to do with the court but to doContinue reading “Custody Time Limit Extension approved at Snaresbrook”

“Them’s the rules” as Judge says permission required in FundingSecure ‘Secret Commission’ case

The County Court has heard that “incompetence” at a firm of solicitors prevented compliance with a court order, as the latest chapter in litigation affecting failed P2P firm FundingSecure unfolds.

O’Connor “was responsible for knowingly misleading both the FCA and investors” tribunal hears on 5th day

The Employment Tribunal has heard brief closing submissions in the matter of O’Connor v Brooke & Lendy. The claimant Mr Kieran O’Connor, former CFO, faced an an avalanche of allegations about his credibility “Not only did [he] knowingly mislead the FCA and investors about the prospects of the Homer Row Claim, but the Claimant alsoContinue reading “O’Connor “was responsible for knowingly misleading both the FCA and investors” tribunal hears on 5th day”

Did internal politics and a culture of confusion at the FCA fail P2P investors?

A trove of normally secret documents have revealed a comprehensive catalogue of missed warnings about the so-called peer-to-peer lending sector after disclosure in a recent case at the Employment Tribunal. This substantial investigation, exclusively carried out by the mouseinthecourt, shows that for a number of years significant concerns were raised – and seemingly not actedContinue reading “Did internal politics and a culture of confusion at the FCA fail P2P investors?”

Collateral investors given green light to receive £5.5m payment, court rules

Investors in the peer-to-peer lending platform Collateral (UK) Limited are set to receive their first pay out, over four years after the firm collapsed in early 2018. Some £5.5m has been identified by the Joint Liquidators, with payments expected to start within a matter of weeks.

Great Green Art Fraud – How FundingSecure lenders were scammed

In 2016 an art dealer took out a series of short-term loans supposedly secured against valuable works of art. Over 1,400 members of the public collectively crowdfunded the money using the now-failed peer-to-peer lending platform FundingSecure. In what is a truly remarkable story the art works promptly disappeared and the art dealer splurged the money,Continue reading “Great Green Art Fraud – How FundingSecure lenders were scammed”

FundingSecure face new threat over alleged ‘secret commission’ payment

Failed P2P platform FundingSecure faces a new threat of litigation over an allegation of a ‘secret commission’ payment. The ‘secret commission’ allegation is expected to be added as a counterclaim in on-going legal action listed for trial this Autumn.