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Keydata founder lent millions to David Elias

Stewart Ford, founder of Keydata, lent millions of his own money to the controversial businessman at the heart of a fraud probe into the collapsed company.

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by Iain Martin on Jul 13, 2009 at 11:12

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Keydata founder lent millions to David Elias

Stewart Ford, founder of Keydata, has lent millions of pounds of his own money to the controversial businessman at the heart of a fraud probe into the collapsed company, Citywire has discovered.

The loans totalling around £5.3 million to David Elias (pictured) and his business interests came to light in the High Court in May this year when Ford sued Elias to safeguard the money he had paid out.

Elias is the deceased businessman behind SLS Capital, the Luxembourg-based fund from which £103 million of Keydata investors’ money has disappeared.

The court case and the loans throw doubt on a statement issued by Keydata following its collapse saying it had no connection with SLS other than as distributor of its bonds.

At a High Court hearing in London in May, Ford sought to gain control of Polymer Vision, an electronic book developer bought by Elias from Dutch electronics giant Philips, which Ford had backed heavily.

A summary judgment handed down by Mr Justice Blackburne reveals that Ford had lent $6.36 million to Elias personally and a further £1.34 million to Polymer Vision in a series of loans from October 2008 as the company teetered on insolvency.

The case centred on the validity of a debenture granted to Ford over Polymer’s shares and assets in return for his financial support.

At one point Elias – who died two days after the judgement was delivered – and his lawyers accused Ford of acting in bad faith and attempting to gain control of Polymer on the cheap. The court heard the evidence of Johan Eliasch, another investor in Polymer, that: ‘Mr Ford explained [in a January meeting] that he had known Mr Elias for many years and that he had been the victim of huge financial losses as a result of what he described as Mr Elias’s misdealing.’

This indicates that Ford’s dealings with Elias date back further than the statement issued by Keydata directors on 30 June would suggest. In it Keydata directors claimed: ‘Like a number of other UK distributors of structured products, Keydata was only a distributor of the SLS bonds and is not and never has been connected in any way with SLS or its owners or managers. Nor is Keydata in any way connected with the various other counterparties involved in the SLS bond issue, such as investment managers, custodians, listing agents and bond registrars.’

Ford was unable to speak to Citywire, citing the ongoing investigation by the Financial Services Authority. However, a spokesman said: ‘These matters have already been disclosed to the authorities by Stewart Ford.’

He added: ‘This was part of an elaborate fraud perpetrated by Elias against Stewart Ford personally (ie, Stewart Ford has been the victim of fraud and it has cost him a lot of money).

‘Stewart and the other directors of Keydata have been co-operating fully with the authorities and will continue to do so,’ he stated.

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9 comments so far. Why not have your say?

How sure can we be that Elias has'nt done a 'Reggie Perrin?'

Assume that there is unequivical proof that Mr Elias has 'passed away?'

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It would be nice to know someone had actually seen the body. On a possibly related subject, I understand that Robert Clarke, (David Elias personal assistant), was stabbed in the street a few weeks back in Labuan. May have been an effort to clear away any loose ends?

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Suddenly clear why Stewart Ford would put his investors money in a fund that hadn't been audited since 2005, had no independent oversight and was run by a known fraudster. Elias owed him millions, Ford had a huge vested interest in keeping Elias afloat, so he supported him with his investors money, (to their cost).

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who is the Johan Eliasch guy mentioned in the court documents?

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This Johan Eliasch is the one you can find on wikipedia.... yes indeed, it is that influential person who no doubt wants to stay clear of any association with David Elias.

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http://news.sky.com/skynews/Home/World-News/Climate-Change-Eliash-Review-Into-Saving-The-Rainforests/Article/200810215119905

How strong if any are these links:

Johan Eliasch wealthy advisor to Gordon Brown on RAINFORESTS.

Where there is government funding available there is a a danger of attracting bad types and misappropriation.

There are suggestions that David Elias used Keydata client money to fund Rainforest Capital SA run by Robert Clarke

Is it the same Robert Clarke who was stabbed who is General Manager of Rainforest Capital SA Luxembourg this company is connected to Dragon Blaze

http://www.dragonblaze.com/assets/

Mary Clarke is the Marketing Manager of

Dragon Blaze which doesnt look very 'green' a lifestyle of luxury for a select few of wealthy clients 1m$ annual fee. I would be interested to know where the money came from to purchase the assets

http://www.dragonblaze.com/news/pdf/forestnewswatch_Oct_17.pdf

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According to information received from a representative of Interalia, their joint action with Orion Life was taken against against Life Settlements Capital SA (LSC) and not against SLS Capital SA as commented in these notices. I presume that LSC is yet another company of David Elias but does this alter the circumstances so far reported?

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Who can give us the truth behind this scam! this comment is from a very anxious wife whose husband

is now distraught over the dissapearance of our money secureed with LSC is it a case of the rich becoming richer from us hard working now poor!! it is our home we will loose so please can someone just give us good solid information about the whereabouts of our monies

I feel I want to expose rotton financial advisors in posh suits in westminster to put their hands up and say oopswe got it wrong it is not secure because the likes of David Elias can just come in take our money and put it where he likes,that is theft .if I stole a loaf from sainsburys see how quick i would be prosectuted and me it is beause i am hungry not greedy like the big knobs involved in this scam I am very shocked that the business brains in this country can not see this fraud, he must have family are they now richer for his death and we are poor or has he changed his name the Reggie Perrin brillant another scam who knows nobody knows but my mortgage company want their money so where do i send my bill - Rainforest, or a holiday at the exclusive Dragon Blaze as i must be a member !!!! Is that where Robert got the money-Life settlements Capital SA answer that one?? wife of Antony Wright

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hugh macdonald

Aug 18, 2009 at 22:09

how long do we have to wait for the fsac to

tell us when we are likely to get our monies refunded,so that we can get our lifes back in some sort of order.

having been advised to invest in Keydata through our financial advisors'HAMPTON DEAN' associates,we are now struggling to live on our pensions.

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