Victims of an alleged £50m fraud by former Chelsea FC sponsor CWM have launched a class action law suit in an effort to get back their investments.
The class action alleges that £50m of CWM investments was held by Cayman Islands-based bank DMS, but that only £1m is now left, which has been frozen while the Metropolitan Police conducts its investigation, which could take "two years" to conclude.
"It is our legal team's strong opinion that the banks that held the CWM Limited accounts are liable for the losses incurred by investors as they were not authorised accounts. DMS Bank and Trust has taken legal action against the Cayman branch managing director for opening and maintaining account against the bank's own Board's wishes," it states.
City A.M. broke the news in March that 13 CWM employees had been arrested during a raid on its Heron Tower offices on suspicion of fraud and money laundering.
As well as its foreign exchange arm, CWM FX, being a partner of Chelsea, the company had also signed deals with boxing legend Barry McGuigan, a MotoGP racing team, another car racing team named SV Racing, and rugby league giants Wigan Warriors.
The class action suit is expected to be filed in the Cayman Islands.