View the article online at http://citywire.co.uk/money/article/a596939
RBS sued over £300m ‘Ponzi scheme'
Former hedge fund manager Jeremy Stone is suing RBS over claims the bank ignored evidence of £300 million ‘Ponzi scheme’, according to news report.
Former hedge fund manager Jeremy Stone is suing Royal Bank of Scotland (RBS.L) over claims the bank ignored evidence of a £300 million ‘Ponzi scheme’.
According to the Sunday Times, Stone, a former portfolio manager at Marble Bar Asset Management, has accused RBS subsidiary NatWest and one of its bankers, Paul Aplin, of ‘turning a blind eye’ to a fraud carried out by two businessmen, Jolan Saunders and Michael Stubel.
The complaint was filed in London in April. Court documents state Stone has accused NatWest and Aspin of negligence, dishonest assistance, deceit and conspiracy. He has claimed he and his family lost £19.3 million between 2009 and 2010 and has demanded £24 million in damages.
According to the court papers, Stone was approached by Saunders in June 2009 about setting up a joint venture to supply electrical goods to hotels.
Stone subsequently provided millions of pounds to firms related to Saunders, including Saunders Electrical Wholesalers and Zac Fashions. It later transpired the firms had minimal revenue.
NatWest provided Saunders companies with business accounts which are alleged to have taken in around £300 million.
Stone’s lawyers, quoted in the Sunday Times, said: ‘[Saunders] was using each….investors’ money to pay back loan interest allegedly owed to the other…investors, the very definition of a Ponzi scheme.’
In response RBS said: ‘These claims have been thoroughly investigated and we believe they have no merit. The bank will defend itself vigorously.’
News sponsored by:
From Brazil and Mexico, to Vietnam and Nigeria, the rapidly developing economies of Latin American and frontier markets, which are some of the smaller, less developed economies in the world, provides investors with a wealth of potential opportunities. Discover why BlackRock's investment trust range is well placed to help you make more of these exciting regions.
More about this:
Look up the shares
Tools from Citywire Money
From the Forums
Weekly email from The Lolly
Get simple, easy ways to make more from your money. Just enter your email address below
An error occured while subscribing your email. Please try again later.
Thank you for registering for your weekly newsletter from The Lolly.
Keep an eye out for us in your inbox, and please add email@example.com to your safe senders list so we don't get junked.
by Robert St George on Aug 31, 2016 at 00:01