London Capital & Finance Plc & Ors v Michael Andrew Thomson & Ors
[2024] EWHC 2894 (Ch)
Trafalgar Multi Asset Trading Company v James David Hadley & Anor.
19 May 2023
[2023] EWHC 1184 (Ch)
High Court
Imagine a group of people set up an investment fund and tricked people into putting their retirement money in. They secretly used the money for their own benefit, breaking lots of rules. The court found many of these people guilty of fraud and ordered them to pay back the stolen money.
Key Facts
- •Trafalgar Multi Asset Trading Company Limited (Trafalgar) is in liquidation.
- •The case involves multiple defendants accused of various offenses related to investments made by Trafalgar.
- •Pension investors lost significant funds due to allegedly fraudulent investment schemes.
- •The liquidators allege an overarching unlawful means conspiracy and several separate conspiracies.
- •Key investments involved: Quantum Global Capital Limited, Titan Capital Partners Limited, Momentum Property Partners (1) Limited, Shawcross Holdings Limited, and CGrowth Capital Bond Limited.
- •Defendants include James Hadley, Thomas Biggar, Stuart Chapman-Clark, Andrew Jones, and Mark Lloyd.
Legal Principles
Unlawful Means Conspiracy
Kuwait Oil Tanker Co v Al Bader [2000] 2 All ER (Comm) 271
Breach of Fiduciary Duties
Bristol and West Building Society v Mothew [1998] Ch 1
Dishonest Assistance
Royal Brunei Airlines v Tan [1995] 2 AC 378
Unconscionable Receipt
BCCI v Akindele [2001] Ch 437
Bribery
A-G for Hong Kong v Reid [1994] 1 AC 324
Vicarious Liability for Bribery
Hamlyn v John Houston [1903] 1 KB 81
Breach of Restriction on Financial Promotion (FSMA)
Financial Services and Markets Act 2000
Breach of General Prohibition (FSMA)
Financial Services and Markets Act 2000
Outcomes
Unlawful means conspiracy found against multiple defendants.
Defendants engaged in fraudulent schemes, breaching fiduciary duties, and violating FSMA.
Bribery established against Hadley, PPL, and Thwaite; vicarious liability for CGrowth.
Secret payments and inducements created conflicts of interest, and lack of disclosure.
Breach of fiduciary duty found against Hadley.
Hadley's undisclosed conflicts of interest and self-dealing in various investments.
No dishonest assistance or unconscionable receipt found against Jones and Titan.
Jones lacked knowledge of the full extent of the conspiracies and acted in good faith, though with some negligence.
CGrowth found liable for various offenses; Bond contracts void.
Vicarious liability for bribery, dishonest assistance, unconscionable receipt, and lack of commercial rationale for transactions.
Chapman-Clark liable for conspiracy and dishonest assistance.
Participation in the Original Conspiracy, and assisting in Hadley's breaches of fiduciary duty.
Lloyd and Pinnacle liable for conspiracy, dishonest assistance, and unconscionable receipt.
Participation in the Original Conspiracy, assisting Hadley's breaches, and receiving funds derived from breaches.
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