Category Archives: Civil

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.

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”

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”

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”

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!

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.

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”

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”

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.

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.

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.

“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. 

Open Justice at the Rule Committee

The Civil Procedure Rule Committee “was set up under the Civil Procedure Act 1997 to make rules of court for the Civil Division of the Court of Appeal, the High Court and the County Court.“ The principle of Open Justice has been discussed at a number of meetings and passages concerning various topics have beenContinue reading “Open Justice at the Rule Committee”

Unbolted: Court refuses to take “treacherous shortcut” across minefield without a map

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 Open Access Finance Ltd t/a Unbolted. Behind these loans were 612 ‘unique lenders’ within which at least 604 were ordinary members of the public.  AContinue reading “Unbolted: Court refuses to take “treacherous shortcut” across minefield without a map”

Insulate Britain protestor successfully purges contempt

Following an injunction order granted by Lavender J on 21 September 2021 the claimant National Highways Ltd were successful in an application to commit Benjamin Buse, 36, to prison for breach of that order. This was part of the high profile ‘Insulate Britain’ protests widely reported on at the time.

Lendy asks court to ‘grasp the nettle’ in multi-million pound loan dispute

In July 2016 the peer-to-peer lending company Lendy Ltd facilitated a loan to Q.E.D. Developments Limited.  Lendy were acting as agent for some 4,900 retail investors who collectively financed a facility of £14.3m, secured by a First Charge against a site known as the former Sunbeam Factory in Wolverhampton.  The loan description on the LendyContinue reading “Lendy asks court to ‘grasp the nettle’ in multi-million pound loan dispute”

Stephen Port inquest – The Coroners Summing Up

In November 2016, following a trial at the Old Bailey, Stephen Port was convicted of murdering four men – Anthony Walgate, Gabriel Kovari, Daniel Whitworth and Jack Taylor. They were aged between 22 and 25 years old and died in Barking between June 2014 and September 2015. Stephen Port was also found guilty of sexuallyContinue reading “Stephen Port inquest – The Coroners Summing Up”

Lendy Administrators seek repayment of so-called ‘Brankesmere Dividend’

The Joint Administrators of Lendy seek repayment of so-called ‘Brankesmere Dividend’ said to be worth over £861k as it is revealed £1.5m of FCA Remediation payments remain outstanding to members of the public involved with failed P2P firm Lendy. The Administrators of Lendy were recently given permission to join Brankesmere Limited as a defendant inContinue reading “Lendy Administrators seek repayment of so-called ‘Brankesmere Dividend’”

3 Day High Court trial adjourned as solicitor omits to find counsel

A three-day High Court trial was due to begin today with Judge Clive Sheldon QC set to consider whether a borrower on the failed P2P platform Lendy, is liable for over £3m of fees and penalties.  In written filings made to the court prior to today, the borrower was expected to argue that she wasContinue reading “3 Day High Court trial adjourned as solicitor omits to find counsel”

P2P Lender Assetz was ‘innocent victim’ to Fraud as borrowers declared bankrupt

Deputy ICC Judge Paul Greenwood granted a bankruptcy petition against two borrowers who obtained a £1.89m crowd-funded loan from P2P firm Assetz Capital. The borrowers were said to have been “knowing parties to a mortgage fraud exercised on the Assetz companies, which were innocent victims of that wrong“. An application for disclosure of the lendersContinue reading “P2P Lender Assetz was ‘innocent victim’ to Fraud as borrowers declared bankrupt”

The Secret Judgment hand down

The High Court blames “an over-sight of a court clerk” to explain why “there was no record of this case having been heard…This matter should have been listed and published on gov.uk but due to this over-sight this was not done. This has highlighted a serious training issue which will be addressed as a priorityContinue reading “The Secret Judgment hand down”

Lendy borrower faces £3m claim as she hunts missing ‘Mr Mohammad’

Lendy Ltd was a so-called peer-to-peer lending company which facilitated the crowd funding of loans by members of the public secured against property and other assets. It was placed into administration following action by the FCA in 2019. One such asset was a property formally “the gatehouse to Stoke Park, a former country mansion whichContinue reading “Lendy borrower faces £3m claim as she hunts missing ‘Mr Mohammad’”

An appeal against a sham marriage at the Immigration Tribunal

I’ve spent the morning at Taylor House, the London home of (among other things) the Immigration and Asylum First Tier Tribunal.  The security personal at the front desk were rather surprised to see a member of the public and they had to check to see whether I was allowed in. 

Lendy Directions – The Background

Lendy Ltd was a so-called peer-to-peer lending company which facilitated the crowd funding of loans by members of the public secured against property and other assets.  The company collapsed in May 2019 following action taken by the Financial Conduct Authority and RSM Restructuring Advisory LLP were appointed as administrators. The Administrators filed an application forContinue reading “Lendy Directions – The Background”

Lendy v Brooke & Others – The Marshall Island Mystery

In 2020 the former directors of the FCA Regulated peer-to-peer finance firm Lendy faced accusations of the misappropriated of £6.5 million via off-shore accounts in a civil claim at the High Court. The claim settled by means of a confidential agreement in October 2022 and it was subsequently revealed that the total amount repayable toContinue reading “Lendy v Brooke & Others – The Marshall Island Mystery”

Court considers ‘pollution’ of a P2P loan agreement

This hearing was an application by the Peer-to-Peer lending platform Open Access Finance Ltd (T/A Unbolted) for determination of a Preliminary Issue prior to trial.  The issue concerned the consequences resulting from the potential status of eight so-called corporate lenders who had participated (along with some 600 individual retail investors) in lending some £148k toContinue reading “Court considers ‘pollution’ of a P2P loan agreement”

DDJ Campbell dismisses claim against the Arriva bus company

This was an application by a Mr Veselin Ivanov against Arriva Kent Thameside Ltd for damages following a road traffic incident that occurred in Dartford, Kent in June 2018. The court was told that the incident took place at the end of a road known as Sharp Way when an Arriva bus, driven by MrContinue reading “DDJ Campbell dismisses claim against the Arriva bus company”

Man acquitted of Jodie Chesney murder: “I want to turn my life around”

Manuel Petrovic, 22, appeared remotely at the County Court in Romford seeking to set-aside a County Court Judgement (CCJ), originally issued because of an unpaid parking ticket.  The respondent to the application, ParkingEye, did not appear at the hearing and Mr Petrovic appeared unrepresented.

Duff & Phelps apply to correct Duff order in Mederco Cardiff case

In September 2016 the peer-to-peer lending company Lendy Ltd facilitated a loan to Mederco (Cardiff) Ltd.  Lendy were acting as agent for some 3600 retail investors who collectively financed a facility of £6.4m, secured by a First Charge against a site with the benefit of planning permission in Mynachdy, Cardiff.  The loan description on theContinue reading “Duff & Phelps apply to correct Duff order in Mederco Cardiff case”

Landlord who “knowingly committing criminal acts” faces bigger penalty at Tribunal

Court report: 03/02/2021 @ The Upper Tribunal Lands Chamber This was an appeal following the decision of Judge Nicholas Nicol at the First-Tier Tribunal Property Chamber made back in June 2020.  That hearing concerned an application made by four tenants of a property in Malden Crescent, London NW1, for the repayment of rent following allegedContinue reading “Landlord who “knowingly committing criminal acts” faces bigger penalty at Tribunal”

Fundingsecure director Richard Luxmore created “false and fraudulent documentation so as to conceal” payments of £8.15m, court papers claim

Following lengthy correspondence, a cache of court documents was finally released in the matter of Fundingsecure Ltd v Mark Damian Clarkson, a claim currently progressing at the Business and Property Courts in Manchester.

Assetz lenders face joinder to borrowers claim

This hearing concerned an application, made by the peer-to-peer lender Assetz SME Capital Limited, to bankrupt two debtors. The court was told Mr Steven James Budd and Ms Jean Shrimpton had debt outstanding from a mortgage secured against a residential property. ICC Judge Barber explained that at a non-attended pre-trial review in April 2020 ICCContinue reading “Assetz lenders face joinder to borrowers claim”

Application by Lendy Ltd struck out as an abuse of process

This was an application by the borrowing companies’ director Des Philips to set aside a Statutory Demand served upon him by Lendy Ltd (In Administration).  The court was told loans advanced by Lendy Ltd had defaulted and they sought to rely upon the Personal Guarantee offered by the director to repay them.

Directions for FundingSecure Limited – Part 1

This was a directions hearing concerning the matter of the so-called Peer-to-peer lending company FundingSecure Limited (in administration). FundingSecure acted as an agent in the facilitation of loans between borrowers and often many hundreds of retail investors. In October 2019 the company entered entered administration leaving some £80m to 3,500 investors outstanding.