Battle rages over £2m High Court claim against liquidated company
A £2M High Court battle over high-risk investments will continue on despite the liquidation of the company involved.
Last week liquidators at FRP Advisory were appointed to York-based TBO Investments, which had in June successfully appealed against a judgement which would have required them to pay £2.2m to claimants.
According to the claimants’ solicitor, Jonathan Mortimer of Raworths in Harrogate, the claim will now be pursued against the company in liquidation, and it will be up to the liquidators FRP Advisory to either admit the claim in liquidation or continue to defend it in Court.
TBO Investments went into liquidation last week with £300,000 owed to creditors, including a “significant” amount to the directors of the company as they proceeded with the legal battle.
Best known as the investment vehicle for former Ukip MEP Godfrey Bloom, TBO was embroiled in controversy in 2014 after a civil claim from former clients Mr and Mrs Mohun-Smith went to trial. A Financial Services Authority fine over processes at the company had already led to it being wound down in 2013.
TBO directors Christopher Tresidder (who resigned in 2014), David McLaughlin and Scott Robinson had been paying for the ongoing legal proceedings via an associated company, Ubique Wealth Management Services.
Legal counsel was fired just weeks before the trial and director Scott Robinson did not turn up, pleading illness. In his absence the judge ruled against TBO.
A Court of Appeal earlier this year declared the court’s judgement “too draconian.”
Following the successful outcome of the appeal, the directors decided they could no longer continue to fund the company or pay its creditors. It went from a turnover of £313,411 in the year to 31 March 2012, to £83,626 in revenues in 2013.
Phoenix company Mount Sterling Ltd will also be involved in the ongoing case, said Mr Mortimer, who has two claims personally ongoing with the investment vehicle. Creditors HMRC were owed £271,387 by the company as of 31 March 2015.
Former Ukip MEP Godfrey Bloom was a founding director and its majority shareholder in 1992 before taking a step back to pursue a career in politics.
Mr Bloom did not respond to requests for comment.
Jonathan Mortimer, head of dispute resolution at Raworths Solicitors who is acting for Mr and Mrs Mohun-Smith and many other claimants said: “We actually see the insolvency of the company as a positive development as we now have clarity on the financial standing of the company and can move forward with additional claims which only arise following an insolvency.
“In particular, we will be asking the liquidator to investigate personal claims against the directors for the manner in which they have conducted the business of the company.
“In particular, a transfer of nearly all clients from TBO Investments Limited to a new start up company run by the same directors called Mount Sterling Wealth Limited for no consideration.”
