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Bank linked to fraud probe fails to meet another payback deadline
Originally posted by 5corpio
Former England manager Sven-Göran Eriksson was among victims of a mysterious deal to buy Notts County FC.
An investment bank embroiled in a potential fraud investigation that counts former England football manager Sven-Göran Eriksson among its victims has missed another self-imposed deadline to return millions of pounds to shareholders.
First London Group, the holding company of former London-listed First London, wrote to shareholders in May saying they would be able to cash in their investments by 30 June, the latest in a series of expired deadlines. Shareholders were first promised a £173m payout in October 2009 when First London Group announced that the bank's assets had been sold to a mysterious company called Swiss Commodity Holding (SCH). Investors have still to receive a penny.
One disgruntled investor said:
First London, which was listed on junior stock market Plus, is now in administration. It attained a high profile in 2009 after supposedly guaranteeing a £5m investment by a consortium of anonymous Middle Eastern businessmen who appeared to have bought Notts County FC. In a move that astonished the sporting world, County installed Eriksson as its director of football with a contract gifting him €11m (£10m) of SCH shares. It soon became clear that there was no money and the deal collapsed.
It later emerged that Russell King, a convicted fraudster who fronted the football deal as well as SCH, had taken control of 49% of First London by claiming he was managing billions of dollars for the Bahraini royal family.
First London was later referred to the Serious Fraud Office by the Financial Services Authority, which stated: "The acquisition of control occurred without the FSA having been given the prior notice which the law requires." Despite that transaction being reversed, the SFO is still understood to be looking at th....More on this Story: Bank linked to fraud probe fails to meet another payback deadline | Business | The Observer
An investment bank embroiled in a potential fraud investigation that counts former England football manager Sven-Göran Eriksson among its victims has missed another self-imposed deadline to return millions of pounds to shareholders.
First London Group, the holding company of former London-listed First London, wrote to shareholders in May saying they would be able to cash in their investments by 30 June, the latest in a series of expired deadlines. Shareholders were first promised a £173m payout in October 2009 when First London Group announced that the bank's assets had been sold to a mysterious company called Swiss Commodity Holding (SCH). Investors have still to receive a penny.
One disgruntled investor said:
First London, which was listed on junior stock market Plus, is now in administration. It attained a high profile in 2009 after supposedly guaranteeing a £5m investment by a consortium of anonymous Middle Eastern businessmen who appeared to have bought Notts County FC. In a move that astonished the sporting world, County installed Eriksson as its director of football with a contract gifting him €11m (£10m) of SCH shares. It soon became clear that there was no money and the deal collapsed.
It later emerged that Russell King, a convicted fraudster who fronted the football deal as well as SCH, had taken control of 49% of First London by claiming he was managing billions of dollars for the Bahraini royal family.
First London was later referred to the Serious Fraud Office by the Financial Services Authority, which stated: "The acquisition of control occurred without the FSA having been given the prior notice which the law requires." Despite that transaction being reversed, the SFO is still understood to be looking at th....More on this Story: Bank linked to fraud probe fails to meet another payback deadline | Business | The Observer