The London Capital Finance (LCF) civil case proceedings began in the High Court in London on Monday, the latest development in the long-awaited court trial.
The LCF administrators began their legal battle against the company’s former executives, including former CEO Michael ‘Andy’ Thomson.
As the Times has previously reported, the investment company collapsed back in 2019 after an intervention by City watchdog the Financial Conduct Authority (FCA).
The collapse followed a discovery that the Tunbridge Wells firm was marketing unregulated mini-bonds along with misleading promises of returns of up to eight per cent.
The investment company had been based in Eridge Road and was set up by Tunbridge Wells businessman and former local Conservative Association chairman, Simon Hume-Kendall.
Mr Hume-Kendall eventually stepped down from the company but went on to become its largest borrower of funds through his business London Oil & Gas (LOG) which also collapsed after LCF went into administration.
More than 11,000 bondholders lost investments including pension pots and life savings.
The latest proceedings follow several investigations by the Treasury and the Financial Reporting Council. The Serious Fraud Office (SFO) also launched an ongoing criminal investigation into the individuals associated with LCF. Just last week it was announced that the FCA had fined and banned LCF’s former compliance chief, Florius Jakobus Huisamen.
The Treasury announced plans to establish an LCF bondholder compensation scheme in April 2021, the scheme closed on October 31, 2022.
The trial began at the Rolls Building, three weeks later than originally scheduled. The case will be presented to Mr Justice Miles and is expected to last for 20 weeks, bringing the conclusion of the trial to mid-summer, just ahead of the High Court holidays.
Anyone affected by the collapse of LCF is encouraged to contact our newsdesk at newsdesk@timesoftunbridgewells.co.uk or call 01892 739 763
