“The documents were first reported on by Daniel Cloake, who runs the investigative court reporting blog, Mouse in the Court. Cloake, an expert on the peer-to-peer industry, said…”
– The Times 27th June 2022
The world of peer-to-peer lending has become embroiled in litigation over the last few years as lawyers (and the courts) grapple with the contractual matrix that underpins these types of investments.
Hundreds of thousands of members of the public stand to lose millions of pounds as a result of poor governance and discordant regulation.
One bombshell decision, the 2018 judgment in the matter of Lederer v Allsop, found that there was a direct contractual relationship between the investor and the borrower. This finding has echoed throughout the peer-to-peer world cropping up in cases involving Assetz, Open Access Finance, and indeed other Lendy cases.
Here are a few platforms I’ve covered for the blog. The inclusion of a platform is no indication of any wrongdoing.
Financial Conduct Authority
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 acted…
Lendy
Lendy Director Brooke Bankrupt
Liam John Brooke, 43, co-founder and director of the failed peer-to-peer lending firm Lendy Ltd, has been declared bankrupt, the mouseinthecourt can exclusively report. If you’ve already read our background piece ‘Lendy Director issued with Bankruptcy Petition’ jump forward to read about the bankruptcy hearing. Liam Brooke pictured at Cowes Week Lendy was a so-called peer-to-peer…
Lendy Director issued with Bankruptcy Petition
Liam John Brooke, 43, co-founder and director of the failed peer-to-peer lending firm Lendy Ltd, has been issued with a bankruptcy petition, the mouseinthecourt can exclusively report. Lendy was a so-called peer-to-peer lending company which facilitated the crowdfunding of loans by members of the public secured against property and other assets. Lendy was fully authorised…
Second round of pleadings released in £15m Lendy Auditors claim
The parties in 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 amended pleadings, the mouseinthecourt can exclusively report. This site is financed by donations to the ‘Cheese Fund‘ or you can buy me a coffee hereReporting…
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. Lendy was a so-called peer-to-peer lending company which facilitated the crowd funding of loans by members of the public secured against property…
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. Please donate to the Cheese Fund to support crowd-funded journalism of the P2P sector.Reporting…
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. This site is financed by donations to the ‘Cheese Fund‘ or you can buy me a coffee…
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. This site is financed by donations to the ‘Cheese Fund‘ or…
‘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. This site is financed by donations to the ‘Cheese Fund‘ or you can buy me a…
£23m damages claim against Lendy Admins dismissed
The High Court has struck out a “flawed both procedurally and substantively” claim made by a disgruntled director of a borrowing company which had used the peer-to-peer firm Lendy to finance the purchase and development of an estate in Scotland. The Killean Estate, self-styled as “A Coastal Retreat on the Shores of Scotland’s West Coast”,…
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. This site is financed by donations to the ‘Cheese Fund‘ or you can buy me a…
Lendy auditor given new deadline in £15m negligence case
Professional auditing firm Moore Stephens, said to have 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, have been given a new deadline to file a defence at the High Court. This site is financed by donations to the ‘Cheese Fund‘…
Lendy auditor caused £15m loss to investors, court papers claim
Professional auditing firm Moore Stephens 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, documents filed at the High Court claim. This site is financed by donations to the ‘Cheese Fund‘ or you can buy me a coffee hereReporting by Daniel Cloake…
Former Lendy Lawyer to appear at tribunal over “misrepresented” loan
A solicitor who worked for the failed peer-to-peer lending firm Lendy has been referred to the Solicitors Disciplinary Tribunal over allegations he obtained a loan for his company by providing false information, the mouseinthecourt can exclusively report. Please donate to the Cheese Fund to support crowd-funded journalism of the P2P sector.Reporting by Daniel Cloake. SRA-regulated-solicitor Stuart Phillip Nuttall,…
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 be…
Lendy – Final directions revealed after secret hearing
The administrators’ of the failed peer-to-peer firm Lendy have had their proposals on how to deal with various issues resulting from its insolvency approved by the High Court. The company collapsed in May 2019 following action taken by the Financial Conduct Authority and RSM Restructuring Advisory LLP were appointed as administrators. Lendy acted as an…
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 years…
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. Please donate to the Cheese Fund to support crowd-funded journalism of the P2P sector.Reporting by Daniel…
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 plug…
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 via…
Lendy: Valuer “materially over-valued” £4.5m Hampton Court loans, court papers claim
Details of the claim made by the Joint Administrators’ of the failed peer-to-peer finance firm Lendy Ltd against Castleplus Ltd, a valuation company based in Mayfair, have been revealed the mouseinthecourt can exclusively report. The underlying loans on the platform are understood to total £4.5m collectively crowdfunded by some 5,300 members of the public. Lendy…
Lendy “expects to recover more than £8,000,000” in valuers breach of contract claim
The claim form in a breach of contract claim against Lee Baron Limited, a specialist property management company based in London, has been published by the High Court, the mouseinthecourt can exclusively reveal. We previously exclusively reported that the Joint Administrators’ of the failed peer-to-peer finance firm Lendy Ltd had filed the claim in December…
“50 issues” in Lendy Sunbeam loan dispute, court told
Litigation between the guarantor of a £14.3m loan, collectively financed by 4,900 members of the public, and the company which facilitated the transaction has had a pre-trial review at the High Court earlier today. Please donate to the Cheese Fund to support crowd-funded journalism of the P2P sector.Reporting by Daniel Cloake. In July 2016 the peer-to-peer lending company…
Lendy Files: FCA breached Freedom of Information Act, Commissioner rules
The city regulator breached the Freedom of Information Act after failing to provide a substantive reason for refusing to disclose files relating to the failed P2P lender Lendy. “On 21 February 2022, the complainant wrote to the FCA and requested the following information…” begins paragraph five of a recently published ICO decision notice. The complainant…
Marshall Island Mystery: Lendy Directors to pay £3.4m, report reveals
The total amount payable by the two former directors of the failed peer-to-peer finance firm Lendy Ltd, accused of misappropriating funds worth £6.5m via off-shore entities, has been revealed in a report published earlier today. Extensive coverage of the claim can be read in “Lendy v Brooke & Others – The Marshall Island Mystery”. The defendants…
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 news…
Lendy launches negligence claim against valuer in £4.5m Hampton Court loan saga
The Joint Administrators’ of the failed peer-to-peer finance firm Lendy Ltd have today filed a professional negligence claim against Castleplus Ltd, a valuation company based in Mayfair, the mouseinthecourt can exclusively reveal. The underlying loans on the platform are understood to total £4.5m collectively crowdfunded by some 5,300 members of the public. Since the advancing…
Lendy directors settle in Marshall Island Mystery fraud case
The two former directors of the failed peer-to-peer finance firm Lendy Ltd, accused of misappropriating funds worth £6.5m via off-shore entities, have settled by means of a confidential agreement, the mouseinthecourt can exclusively reveal. Please donate to the Cheese Fund to support crowd-funded journalism of the P2P sector.Reporting by Daniel Cloake. The litigation, dubbed ‘The Marshall Island Mystery’…
Tribunal rejects £6.6m claim but finds Kieran O’Connor was “a convenient scapegoat”
The Employment Tribunal has rejected a £6.6m claim that the former CFO of failed Peer-to-Peer finance firm Lendy was unfairly dismissed or suffered detriments. Please donate to the Cheese Fund to support crowd-funded journalism of the P2P sector.Reporting by Daniel Cloake. Mr O’Connor was pursuing a claim of unfair dismissal against Lendy Ltd, and a claim in respect…
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 also…
CEO: Lendy was “in chaos…I found it a bit overwhelming”, tribunal hears on 4th day
The Employment Tribunal has heard its last day of witness evidence from parties in this rollercoaster ride of a journey through the last days of failed P2P firm Lendy. Today the tribunal heard: That consultant Charles Bellringer described one decision as a “an appalling mistake to make and I’m not surprised the FCA were furious”…
Lendy was in “regulatory financial cardiac arrest”, tribunal hears on 3rd day
The founders of failed peer-to-peer lending company Lendy were “wholly inappropriate” in calling investors punters after they sunk life savings into the business shortly before it entered administration, an employment tribunal has heard. Today we heard how Kieran O’Connor allegedly said “lenders on Lendy’s peer-to-peer lending platform should be regarded as ‘punters’ who were taking…
Lendy: “It was a dysfunctional company”, tribunal hears on 2nd day
The former Chief Financial Officer at failed peer-to-peer lending firm Lendy says he was dismissed for threatening to whistleblow the CEO’s alleged “get around the rules” conduct to the FCA, an employment tribunal has heard. Today we heard claims that Lendy employees were forced to meet in the car park to avoid being heard by…
Former Lendy CFO’s £6.6m Employment Tribunal claim begins
The former Chief Financial Officer of FCA Regulated firm Lendy has today (Aug 2nd 2022) begun his multi-million-pound claim against his former boss and employer at the London Central Employment Tribunal. Please donate to the Cheese Fund to support crowd-funded journalism of the P2P sector.Contemporaneous Tribunal Reporting by Joe Morgan, additional reporting by Daniel Cloake. The claimant, former JP…
Lendy Borrower fails to find Mr Mohammed at High Court
A Lendy borrower who saw her £300,000 debt spiral to £3.7m has lost her case at the High Court. 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…
Lendy’s Head of Development gives evidence to the High Court
Alan Darling joined the peer to peer lending firm Lendy in May 2016 as their Head of Development. His role was to grow and head up the development loan side of the business as prior to then Lendy had only facilitated so-called bridging loans. Lendy was placed into administration in May 2019 following action taken…
Muncaster and Knowles apply to correct Duff order in Mederco Cardiff case
“Seems to be a bit cursed this administration isn’t it” began His Honour Judge Saffman. Indeed it is. The mouseinthecourt covered an almost identical application just over a year ago at the same court in respect of the same company. At the previous hearing, which we wrote about, HHJ Davis-White QC ordered that an administration…
Lendy Administrators’ permit ex-director to sell property
The High Court has altered a worldwide freezing injunction to allow an ex-Lendy director to sell property it can be revealed. According to court papers recently filed, former Lendy director Tim Gordon, 42 of Chichester, has been granted permission from the court to vary a worldwide freezing injunction imposed on him and others in June…
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 Lendy…
Lendy CFO reported ‘serious financial irregularities’ before sacking, tribunal finds
Kieran O’Connor, former Chief Financial Officer of FCA Regulated firm Lendy, is pursuing a claim at the Employment Tribunal for unfair dismissal said to be as a result of disclosures concerning “serious financial irregularities” at the company. Former JP Morgan banker Kieran O’Connor joined the Lendy team as CFO in June 2018. A press release…
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 in…
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 was…
Lendy Directions Hearing Day 4
Oral and Written Submissions made on Day 4 in the Matter of Lendy Ltd at the High Court in Birmingham. See the background to this week-long-hearing here: “Lendy Directions Hearing begins”Read the submissions made on Day 1 here: “Lendy Directions Hearing Day 1” Read the submissions made on Day 2 here: “Lendy Directions Hearing Day 2″Read…
Lendy Directions Hearing Day 3
Oral and Written Submissions made on Day 3 in the Matter of Lendy Ltd at the High Court in Birmingham. The background to this week-long-hearing here: “Lendy Directions Hearing begins”Read the submissions made on Day 1 here: “Lendy Directions Hearing Day 1″Read the submissions made on Day 2 here: “Lendy Directions Hearing Day 2” Read the…
Lendy Directions Hearing Day 2
Oral and Written Submissions made on Day 2 in the Matter of Lendy Ltd at the High Court in Birmingham. The background to this week-long-hearing here: “Lendy Directions Hearing begins”Read the submissions made on Day 1 here: “Lendy Directions Hearing Day 1″Read the submissions made on Day 3 here: “Lendy Directions Hearing Day 3″Read the submissions…
Lendy Directions Hearing Day 1
Oral and Written Submissions made on Day 1 in the Matter of Lendy Ltd at the High Court in Birmingham. The background to this week-long-hearing here: “Lendy Directions Hearing begins”Read the submissions made on Day 2 here: “Lendy Directions Hearing Day 2″Read the submissions made on Day 3 here: “Lendy Directions Hearing Day 3″Read the submissions…
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 for…
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 to…
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 the…
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. The court heard…
150 Mederco investors stand to lose whole of investment
In April 2017 the so-called peer-to-peer lending company Lendy Ltd facilitated a loan to Mederco Block A Ltd. Lendy were acting as agent for some 3500 retail investors who collectively financed a facility of £5.2m, secured by a First Charge against a property in West Yorkshire. The loan description on the Lendy website describes the…
FundingSecure
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. Part of a series of reporting on the so-called Quistclose Claim In 2022 this site exclusively reported on retail lenders…
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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. In 2022 this site exclusively reported on…
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FundingSecure – “innocent investors” given March deadline in 500k Quistclose claim
A judge has approved directions in a High Court claim after a disgruntled creditor of the failed peer-to-peer lending firm FundingSecure alleged its £500k investment was misappropriated and should be returned. In 2022 this site exclusively reported on retail lenders who were raising money for legal advice after being faced with the prospect of being…
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FundingSecure launch bankruptcy proceedings against two borrowers
Two borrowers, who unsuccessfully argued at the County Court that their mortgage broker had been “bribed”, have been presented with bankruptcy petitions by the failed peer-to-peer lending firm FundingSecure. Please donate to the Cheese Fund to support crowd-funded journalism of the P2P sector.Reporting by Daniel Cloake. In July 2016 an amount totalling some £68k, crowdfunded by members of…
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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. Please donate to the Cheese Fund to support crowd-funded journalism of the P2P sector.Reporting by Daniel Cloake. FundingSecure were an FCA-regulated online peer-to-peer…
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FundingSecure administrators to remain neutral on £500k claim against “innocent investors”
A disgruntled creditor of the failed peer-to-peer lending firm FundingSecure has launched a high court claim alleging its £500k investment was misappropriated and should be returned. Last year this site exclusively reported on retail lenders who were raising money for legal advice after being faced with the prospect of being joined to this claim. Read…
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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. The mouseinthecourt has complied a list of some of…
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FundingSecure Art Loans litigation settles
The long running dispute between the failed peer-to-peer firm FundingSecure and an art dealer who fraudulently hoodwinked 1,400 members of the public out of £2.3m has settled, the mouseinthecourt can exclusively reveal. Please donate to the Cheese Fund to support crowd-funded journalism of the P2P sector.Reporting by Daniel Cloake. In October 2022 this site reported that the Court…
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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. Please donate to the Cheese Fund to support crowd-funded journalism of the P2P sector.Reporting by Daniel Cloake. In…
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FundingSecure hit with third Secret Commission case
The failed peer-to-peer lender FundingSecure has been hit with a third so-called secret commission claim after a borrower alleged her mortgage broker was “bribed” with a payment of £17k. Please donate to the Cheese Fund to support crowd-funded journalism of the P2P sector.Reporting by Daniel Cloake. In May 2022 this site exclusively reported on a claim by an…
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FundingSecure Art Fraudster fails at Court of Appeal
Three senior judges have unanimously dismissed a fraudsters appeal that 1,400 members of the public, hoodwinked as part of a £2.3m art-loan investment scam, should not be able to recover their money from his family pension scheme. Please donate to the Cheese Fund to support crowd-funded journalism of the P2P sector.Reporting by Daniel Cloake. Lord Justice Newey, Lord…
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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. Please donate to the…
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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. The background to this hearing can be read in “FundingSecure Art Loans saga to be heard…
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FCA silent on client account cash grab
Investors in the failed peer-to-peer lending company FundingSecure are raising money for legal advice after a disgruntled company creditor raised the prospect of joining them to a High Court claim. Update: September 2022 – Nigel Cairns, Transparency Task Force member, responds. Click to jump FundingSecure was a company which facilitated the crowdfunding of loans by…
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“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. Please donate to the Cheese Fund to support crowd-funded journalism of the P2P sector.Reporting by Daniel Cloake. Two borrowers who used the platform to obtain £78k secured against…
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FundingSecure Art Loans saga to be heard at Court of Appeal
A High Court judgment made in favour of 1,400 defrauded members of the public who crowdfunded loans to disgraced art dealer Matthew Green, 54, is set to be appealed, the mouseinthecourt can reveal. Please support crowd-funded journalism of the P2P Sector by donating to the Cheese Fund. The background to the loans can be read in…
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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,…
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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. Partial funding for this reporting was generously provided by members of the ‘FundingSecure Action Group’. If…
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Court of Appeal hands down Judgment in key FundingSecure case
The judgment in the matters of FundingSecure and Mark Clarkson was handed down earlier today by the Court of Appeal. This followed a hearing on 9th February 2022 at the Royal Courts of Justice. At the end of the ninety-minute-hearing Lord Justice Lewison ruled: “We are of the clear view that the part 20 claim…
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Henderson who??? Key FundingSecure case goes to Court of Appeal
A borrower who used the peer-to-peer lending platform Fundingsecure faces his multi-million pound counterclaim against its directors struck out as an abuse of process at the Court of Appeal. Shameless plug: please consider donating to the cheese fund to support crowd-funded journalism of this and other P2P cases Fundingsecure were a so-called peer-to-peer lending company…
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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. Fundingsecure Ltd were a so-called peer-to-peer lending company who acted as an agent between borrowers and often many hundreds of retail lenders.…
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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. BackgroundMr Mark Cawson…
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The House Crowd
House Crowd investors given three weeks to have voices heard
The House Crowd was a so-called peer-to-peer lending firm which was founded in 2012 by Frazer Fearnhead and Suhail Nawaz. The company facilitated the crowd funding of loans made by members of the public secured against property and other assets. In June 2020 the firm was placed under restrictions by the FCA after what was…
MoneyThing
Moneything Action Group given 6 weeks to organise
Some 2,494 investors who had participated in crowd-funded loans on the failed P2P platform Moneything were joined to this High Court action as respondents on 16th September 2021. This was their opportunity to comment on directions prior to a trial scheduled for February 2022. The application was made by Joint Administrators Tom Straw and Milan…
Unbolted – Open Access Finance Ltd
Unbolted litigation settles on confidential terms
A long running legal dispute between an SRA-regulated solicitor and the peer-to-peer lending platform Open Access Finance Ltd has settled, the mouseinthecourt can exclusively report. 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…
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 witness…
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” after…
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! In 2016, Mr Andrew Jonathan Milne, described in court…
Unbolted: Milne claim timetabled for trial
A High Court claim against a peer-to-peer lending company and 612 participants in the underlying loans has been given a timetable for trial following a one day hearing. 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…
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 members…
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. A…
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 to…
Assetz
CEO: Assetz ‘would have collapsed’ if I didn’t sign £1m agreement, court papers say
Stuart Alexander Law, 61, the co-founder and long-time CEO of property finance giant Assetz Capital, is at the centre of a High Court dispute brought by a specialist litigation funder on behalf of disgruntled investors. This site is financed by donations to the ‘Cheese Fund‘ or you can buy me a coffee hereReporting by freelance journalist…
P2P Lender Assetz treated customer unfairly, Financial Ombudsman rules
The Financial Ombudsman has ordered the peer-to-peer lending company Assetz to refund fees to a customer after finding there should have been “consideration for [the customers] request to exit the contract without accepting the fee”. The peer-to-peer lending firm Assetz facilitates the crowdfunding of secured property loans by members of the public. It announced a…
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 lenders…
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 ICC…
Ablrate
Court sets out roadmap in disputed Ablrate security case
Litigation involving Peer-to-peer lending platform Ablrate was given the green light to proceed to trial this afternoon at the Manchester County Court. At a hearing earlier today, District Judge Paul Richmond explained he understood the case between the Joint Liquidators of Shawhouse Energy Centre Limited and Ablrate to be: “have [Ablrate] got security, if they have…
Collateral
Collateral Currie brother must pay £265k or face 3 years in prison
The Crown Court has ordered the director of a failed peer-to-peer lending company to pay compensation to over 1,000 investors who were victims of his fraudulent activity. Collateral (UK) Limited was a finance company which facilitated investments crowdfunded by members of the public. The firm and two related companies entered administration in April 2018. The…
Peter Currie victims set to receive 500 pence each after FCA confiscation hearing
The Crown Court has approved a payment of £5,000 to be divvied up among the over 1,000 investors who were victims of the fraudulent activity of a director of the failed peer-to-peer lending firm Collateral (UK) Limited. Collateral (UK) Limited was a finance company which facilitated investments crowdfunded by members of the public. The firm…
Peter Currie fails to challenge conviction at court of appeal
Three senior judges at the Court of Appeal have refused to consider an application by the disgraced former director of the peer to peer lending platform Collateral, who was convicted of various fraud offences last year, to challenge his conviction. Collateral (UK) Limited was a finance company which facilitated investments crowdfunded by members of the…
Timetable set for Currie brothers proceeds of crime hearing
A crown court judge has set a timetable for a proceeds of crime hearing to recover funds from two brothers who were convicted for various fraud offences earlier this year in connection to the failed peer to peer lending platform Collateral. Collateral (UK) Limited was a finance company which facilitated investments crowdfunded by members of…
Currie brothers jailed after Collateral fraud trial
Two pawnbroker brothers were jailed for a combined eight years earlier today after trying to pass off FCA permissions they had for a reality TV show as a big money finance lending company which led to over £11 million loss to investors. Collateral (UK) Limited was a finance company which facilitated investments crowdfunded by members…
Guilty verdicts returned in Collateral fraud trial
Earlier today a jury returned their verdicts against two brothers who ran the finance firm Collateral UK Limited. Collateral (UK) Limited was a finance company which facilitated investments crowdfunded by members of the public. The firm and two related companies entered administration in April 2018. The two defendants, Andrew Currie, 57, and Peter Currie, 59,…
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 “robust…
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 convince…
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 they…
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” Collateral (UK) Limited was a finance…
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 (UK)…
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 the…
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, said…
“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 the…
Jury hear the ‘agreed facts’ in Collateral FCA fraud case [Day 11 AM]
As the case for the prosecution closes, the jury are read out a number of agreed facts. These contain statements which are in not in dispute between the parties but can form important background information for the jury. Collateral (UK) Limited was a finance company which facilitated investments crowdfunded by members of the public. The…
Collateral director: “the FCA are looking for a scapegoat”, jury hears [Day 10]
Directors of a firm accused of lying to their investors about their accreditation claim they were made a “scapegoat” by the FCA as the register allowed them to easily change the company’s name, a court heard. Collateral (UK) Limited was a finance company which facilitated investments crowdfunded by members of the public. The firm and…
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 (UK) Limited…
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. Collateral (UK) Limited was a finance company which…
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. This is a mammoth post covering just the morning of Tuesday April 25th, in short: Collateral (UK) Limited was a finance company which facilitated investments…
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. Collateral (UK) Limited…
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. Collateral…
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 mistake…
Collateral Directors had motive to lie to secure investments, jury told [Day 4]
A jury at Southwark Crown Court has heard evidence from an investor in the failed platform Collateral (UK) Limited and from an FCA investigator. Collateral (UK) Limited was a finance company which facilitated investments crowdfunded by members of the public. The firm and two related companies entered administration in April 2018. The two defendants, Andrew…
Collateral Directors “lied to their investors” jury told [Day 3]
As the barrister representing the FCA opens the case, a jury at Southwark Crown Court hears that two directors of an investment firm are believed to have lied to their investors in order to make money for themselves. Collateral (UK) Limited was a finance company which facilitated investments crowdfunded by members of the public. The…
FCA vs The Currie Bro’s: The Criminal Trial
The investigative court reporting blog mouseinthecourt is providing coverage of the criminal trial brought by the Financial Conduct Authority against the directors of Collateral (UK) Ltd. The defendants are Peter Currie, 59, and Andrew Currie, 57. Read the indictment here. They have previously pleaded not guilty to two charges under the Fraud Act 2006, and…
FCA Collateral Case – 4th preliminary hearing concludes
A twenty-three-minute-hearing in criminal proceedings brought by the FCA against the former directors of Collateral (UK) Limited was held earlier today. Please donate to the Cheese Fund to support crowd-funded journalism of the P2P sector.Reporting by Daniel Cloake. Collateral (UK) Limited purported to be a so-called Peer-to-Peer lending firm, which facilitated investments crowdfunded by members of the public.…
FCA Collateral Case – January Update
A twenty-seven-minute-hearing in criminal proceedings brought by the FCA against the former directors of Collateral (UK) Limited was held earlier today. Please donate to the Cheese Fund to support crowd-funded journalism of the P2P sector.Reporting by Daniel Cloake. Collateral (UK) Limited purported to be a so-called Peer-to-Peer lending firm, which facilitated investments crowdfunded by members of the public.…
Collateral Currie brothers trial update
A three-minute-hearing in criminal proceedings brought by the FCA against the former directors of Collateral (UK) Limited was held earlier today. Please donate to the Cheese Fund to support crowd-funded journalism of the P2P sector.Reporting by Daniel Cloake. Collateral purported to be a so-called Peer-to-Peer lending firm, which facilitated investments crowdfunded by members of the public. Collateral (UK)…
Collateral Currie brothers trial on track as Case Management Hearing held
A six-minute-hearing in criminal proceedings brought by the FCA against the former directors of Collateral (UK) Limited was held earlier today. Please donate to the Cheese Fund to support crowd-funded journalism of the P2P sector.Reporting by Daniel Cloake. Collateral purported to be a so-called Peer-to-Peer lending firm, which facilitated investments crowdfunded by members of the public. Collateral (UK)…
Collateral Liquidators confirm no challenge to court order as investors await pay out
Investors in the failed P2P firm Collateral UK Limited are awaiting their first payment of funds, almost four and a half years since the firm collapsed in early 2018. At a court hearing on 13th June, the mouseinthecourt exclusively reported that Collateral investors had been given the green light to receive payments of £5.5m. This…
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. Please donate to the Cheese Fund to support crowd-funded journalism of…
Trial date set for Currie brothers
Two former directors of Collateral (UK) Ltd, Peter Currie, 57, and Andrew Currie, 56, appeared at Southwark Crown Court earlier today following action taken by the FCA. Collateral purported to be a so-called Peer-to-Peer lending firm, which facilitated investments crowdfunded by members of the public. Collateral (UK) Limited and two related companies entered administration in…
Collateral Currie brothers appear in court following FCA action
Two former directors of Collateral (UK) Ltd, Peter Currie, 57, and Andrew Currie, 56, appeared at Westminster Magistrates Court earlier today following action taken by the FCA. The men, who are brothers, are facing two charges under the Fraud Act 2006 and one charge under the Proceeds of Crime Act 2002. Mr Andrew Currie appeared…
FCA commences criminal proceedings against Collateral Directors
The FCA has commenced criminal proceedings against the 2 former directors of Collateral (UK) Ltd, Peter Currie, 58, and Andrew Currie, 57, who each face 2 charges under the Fraud Act 2006 and 1 charge under the Proceeds of Crime Act 2002. In a news statement published on January 7th 2022: The FCA alleges that…
Mouse in the Court 