London property developer slapped with 14-year ban for £13m ‘ponzi’ scheme June 8, 2021 A fraudster property developer who promised investors comfy returns but instead used a £13m ‘ponzi’ property scheme has been slapped with a 14-year ban. While transferring funds abroad, Chelmsford-based Mitchell Mallin targeted investors with the promise to do up dilapidated properties in the capital and Essex before selling them for a profit. “As the period [...]
Week in Sportbiz: Mexican stand-off over Club Necaxa NFT; press conferences overshadow French Open; English football in distress June 3, 2021 From NBA Top Shot to Christian Fuchs, the march of the NFT in sport has looked unstoppable. Until now, that is. Mexican football chiefs this week put the brakes on the plans of Club Necaxa to become the world’s first sports team to sell an ownership stake using blockchain technology. Club Necaxa, whose shareholders include [...]
Sub-prime lender Amigo warns of insolvency after court defeat June 1, 2021 Amigo Loans has said it faces insolvency after it suffered a major blow last week when a High Court judge refused to approve a compensation scheme that capped payments for historic complaints. In an update this morning, the sub-prime lender said it would not be pursuing an appeal following the High Court judgment. As a [...]
BoE policymaker urges regulators to probe $10bn Archegos collapse May 26, 2021 A Bank of England’s policymaker has urged that financial regulators today should have a cross-border inquiry into how the collapse of US investment fund Archegos cost banks more than $10bn. Anil Kashyap, a BoE financial policy committee member, also warned that new European Union bank capital rules could have “tragic” outcomes if abused. Archegos collapse [...]
Adios, Amigo? Sub-prime lender shares collapse in half after court blow May 25, 2021 Subprime lender Amigo Loans has suffered a major blow after a High Court judge knocked down plans to cap compensation payments for historic complaints. A High Court judge ruled in favour of the Financial Conduct Authority who argued that the scheme would place a “disproportionate burden on customers, as opposed to shareholders and bondholders.” The [...]
Kwasi Kwarteng: Nationalisation is least likely route for Liberty Steel May 25, 2021 The UK is considering all options for Liberty Steel but nationalisation is the least likely route, the business secretary has told MPs. In March Sanjev Gupta’s company GFG Alliance, which owns Liberty Steel, asked the government for a bailout of as much as £170m to avert collapse. The insolvency of Greensill Capital, which was among [...]
Begbies Traynor revises up earnings expectations May 20, 2021 Begbies Traynor has revised up its earnings expectations following a year of growth at the professional services firm that saw it make four acquisitions. In a market update today the company said revenue for its 2021 financial year was expected to be £83.7m, up from £70.5m in 2020. Adjusted profit before tax was revised up [...]
Carillion liquidators secure funding to take KPMG to court for audit failures May 19, 2021 Carillion’s liquidators have secured a £250m funding deal with a litigation funder to take KPMG to court for audit failures. Litigation Capital Management (LCM) will fund a claim against the Big Four firm in the Commercial Court of the High Court. Carillion’s liquidators are taking KPMG to court for perceived audit failures, resulting in losses [...]
FRP Advisory reports dip in insolvency jobs as government measures stave off corporate collapses May 14, 2021 FRP Advisory reported a drop off in restructuring appointments in the last financial year as government financial aid protected many businesses from collapse during the Covid pandemic. The professional services firm, which plans to pay a dividend for the year, said the number of insolvency appointments it secured in the last 12 months was down [...]
SFO launches money laundering probe into Gupta family over ties to Greensill Capital May 14, 2021 The Serious Fraud Office (SFO) said this morning it is launching an investigation into the Gupta Family Group Alliance. “The SFO is investigating suspected fraud, fraudulent trading and money laundering in relation to the financing and conduct of the business of companies within the Gupta Family Group Alliance (GFG), including its financing arrangements with Greensill [...]