London Capital & Finance Plc (In Administration) and Others v Michael Andrew Thomson and Others

Court: High Court of Justice, Business and Property Courts of England and Wales, Business List (CD)
Case No: BL20200001343
Neutral Citation: [2024] EWHC 2894 (Ch)
Date: 14th November 2024
Judge: Mr Justice Miles

Parties Involved

  • Claimants:
    • London Capital & Finance Plc (in administration)
    • Finbarr O’Connell, Adam Stephens, Henry Shinners, Colin Hardman, Geoffrey Rowley (joint administrators of London Capital & Finance Plc)
    • London Oil & Gas Limited (in administration)
    • Finbarr O’Connell, Adam Stephens, Colin Hardman, and Lane Bednash (joint administrators of London Oil & Gas Limited)
  • Defendants:
    • Michael Andrew Thomson
    • Simon Humekendall
    • Elten Barker
    • Spencer Golding
    • Paul Careless
    • Surge Financial Limited
    • John Russell Murphy
    • Robert Sedgwick
    • Grosvenor Park Intelligent Investment Limited
    • Helen Humekendall

Representation

  • Claimants:
    • Stephen Robins KC, Andrew Shaw, and Daniel Judd (instructed by Mishcon de Reya LLP)
  • Defendants:
    • First Defendant: Anumrita Dwarika Gungabissoon (instructed by Richard Slade & Partners LLP)
    • Fifth and Sixth Defendants: Roy Ledgister and Owen Curry (instructed by Kingsley Napley LLP)
  • Eighth Defendant: Appeared in person.
  • Fourth, Seventh, and Ninth Defendants: Not represented and did not appear.

Hearing Dates

  • 19th, 22nd, 26th, 29th February 2024
  • 4th, 7th, 11th, 13th, 18th, 25th, 27th March 2024
  • 10th, 11th, 15th, 18th, 29th April 2024
  • 2nd, 8th, 13th, 14th, 23rd May 2024
  • 10th, 13th, 17th, 19th June 2024

Key Facts

This case involves a complex dispute following the administration of London Capital & Finance Plc and London Oil & Gas Limited. Both companies were involved in high-risk investment schemes, leading to financial losses for many investors. The administrators of these companies have initiated proceedings to recover assets and address claims made against individuals and entities involved in managing or advising these companies. The case includes multiple defendants, many of whom were alleged to have been involved in fraudulent activities or misconduct linked to the operations of the two companies.

Legal Issues

  • Fraudulent Misrepresentation:
    The claimants assert that the defendants engaged in fraudulent misrepresentation in the promotion and sale of high-risk investments to the public.
  • Breach of Fiduciary Duty:
    Allegations involve breaches of fiduciary duties by directors, financial advisors, and others responsible for the governance and financial management of the companies in administration.
  • Asset Recovery:
    The central aim is to recover assets lost by investors and return them to creditors of the two companies, while also pursuing remedies for wrongful or negligent actions by the defendants.

Observations

  • The case highlights the consequences of high-risk financial schemes that can lead to significant harm for individual investors and the broader economy.
  • The involvement of multiple parties and complex financial structures will require thorough scrutiny of corporate governance practices and personal accountability.

Decision

The final decision in this case will likely address issues of liability, asset recovery, and the scope of remedies available to investors affected by the mismanagement of the two companies. The case may also set a precedent for how financial administrators can pursue claims against individuals and entities in cases involving fraud and misrepresentation in financial markets.

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