London Capital & Finance director accused of manipulating company accounts
A director who was arrested in relation to the London Capital & Finance (LCF) scandal has been accused by a judge of manipulating his company’s accounts.
LCF, which offered so-called mini-bonds to investors, collapsed in 2019 amid a probe from the Financial Conduct Authority. It owes £237million to 11,500 bondholders.
Elten Barker was a director of London Oil & Gas (LOG), which received £129million from LCF in loans which it was supposed to invest.
London Capital & Finance, which offered so-called mini-bonds to investors, collapsed in 2019 amid a probe from the Financial Conduct Authority. It owes £237m to 11,500 bondholders
LOG went bust in the wake of the LCF collapse, and administrators Smith & Williamson have tried to claw back the money it borrowed in order to return it to savers.
But in a High Court judgment yesterday, in a case brought by Barker to have Smith & Williamson fired as administrators, Judge Jones said LOG’s balance sheet could not be trusted.
Barker, who was not charged following his arrest last year and denies any wrongdoing, had been seeking to claim that LOG was solvent and would have been able to repay its debt to LCF.
But the judge added: ‘The evidence leads to the conclusion that the balance sheet is unreliable because assets have been over-valued.’