Integrity's Stamp clashes with critics in court

Iain Stamp, the former boss of Integrity Financial Solutions, has received a public apology from an independent business consultant who circulated allegations that he had defrauded clients who invested in traded endowment policies through the company.

In a libel hearing at the High Court of Justice, David Cottrell, through his lawyer, confirmed he could not support claims that there was evidence that Stamp had defrauded clients who invested in Integrity's TEP products.

Cottrell had also claimed in the email newsletter that Stamp had entered into a corrupt relationship with individuals working for two major banks in order to secure lending for the TEPs.

Cottrell agreed that this was also unfounded, stating through his lawyer: 'The defendant wishes to offer his sincere apologies to the claimants. He has also confirmed that he will not repeat these allegations.'

Stamp's lawyer, Korieh Duodu, of Addleshaw Goddard, said in a statement on behalf of Stamp that the reason the TEPs had failed was because of the recession, mis-selling by advisers, and clients' own decisions to sell policies early.

He said: 'The truth is that as a result of the recession, mis-selling by some IFAs, and decisions by clients to cash in TEPs prior to the maturity dates, a number of the products marketed by Integrity have not performed as well as was originally envisaged.'

Stamp, who has agreed a confidential settlement with Cottrell, said in a statement: 'There has been a lot of negative publicity in the media and elsewhere surrounding my involvement with Integrity and I am pleased that Mr Cottrell has decided to apologise for making these claims.

'I am very happy to have achieved this outcome and to be able to draw a line under this matter.'

Stamp's former company was censured by the FSA earlier this year but Stamp himself avoided any action.

Margaret Cole, the FSA's director of enforcement and financial crime, said at the time: 'Geared traded endowment policies are complex products with significant risks attached to them.