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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.

 
RBS sued over £300m ‘Ponzi scheme'

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.’

4 comments so far. Why not have your say?

alan thorburn

Jun 18, 2012 at 11:07

If it sounds too good to be true.............!

report this

mo khan

Jun 18, 2012 at 14:47

"negligence, dishonest assistance, deceit and conspiracy" .forgot Murky.

But Surely... not in Banking!

report this

Rob Morrison

Jun 18, 2012 at 21:14

As an RBS shareholder, the news on this company just keeps getting worse. Professional Banker?

Also, the recent 1:10 shares revaluation, feels like the bank telling share holders what the shares should be worth, when they are actually only worth the previous value, based on RBS performance & past practice/s.

report this

Sheila Jones

Jul 23, 2012 at 00:41

I hope I see this come out in court in the very near future...time for action against all these fraudsters.

report this

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