(Sharecast News) - The administrators of London Capital & Finance are suing 13 people for £178m over an alleged fraud that used investors' money to buy horses, a helicopter and lifetime memberships to a private Mayfair club, the Financial Times reported.
Administrators at Smith & Williamson have told people linked to the collapsed investment company they are defendants in a lawsuit claiming LC&F's purpose was to defraud bondholders. More than 11,000 investors put £237m into LC&F before it failed in 2019.
Smith & Williamson alleges about £136m of investors' money went to the company's executives either directly or via loans to companies. The directors have denied wrongdoing.
The lawsuit alleges LC&F's founder Simon Hume-Kendall and his wife Helen received at least £24m of investors' cash and spent £250,000 buying memberships for Annabel's, a posh private members' club. The FT said Spencer Golding, a big shareholder in LC&F-linked companies, received almost £43m of shareholders' cash and used £1.2m to buy a helicopter.
A lawyer for the Hume-Kendalls told the FT they "strongly deny any wrongdoing" and a representative for Golding declined to comment to the FT.
LC&F is the subject of a Serious Fraud Office investigation. The Financial Conduct Authority has banned the marketing of risky "mini-bonds" to retail investors after the company's collapse.
(adds detail, quotes)BIRMINGHAM, England, May 9 (Reuters) - Manchester United recovered to beat Aston Villa 3-1 away in the Premier League on Sunday as Bruno Fernandes, Mason Greenwood and Edinson Cavani scored in the second half to put on hold the t...