Category Archives: P2P

FundingSecure – representative lender appointed in £500k Quistclose claim

A judge has approved the appointment of a single person to represent the interests of 2,148 ‘innocent investors’ caught up in the FundingSecure Quistclose fiasco, in which a disgruntled creditor of the failed peer-to-peer lending firm FundingSecure has alleged its £500k investment was misappropriated and should be returned.

Solicitor makes even more “scandalous allegations”, High Court told, as it’s ruled he doesn’t have to pay security for costs

An SRA-regulated solicitor, who had previously told a court that this humble blogger had attacked him outside a court building leaving him “close to death“, has deployed further “scandalous allegations” in a signed witness statement, the High Court has been told. Examples of the “baseless assertions and commentary“, said to be in a recent witnessContinue reading “Solicitor makes even more “scandalous allegations”, High Court told, as it’s ruled he doesn’t have to pay security for costs”

Lendy: 20% of borrowers failed credit policy checks but were still given loans, confidential report reveals

A review of the Lendy loan book by insolvency experts Duff and Phelps, published in February 2018 shortly after the FCA found “vital” failures, has revealed a smorgasbord of weaknesses at the now insolvent peer-to-peer lending firm, with members of the public set to lose millions. The confidential document, which says it “must not beContinue reading “Lendy: 20% of borrowers failed credit policy checks but were still given loans, confidential report reveals”

Solicitor sent “disgraceful and inexcusable” communications in £40k property dispute, court finds

SRA-regulated solicitor Andrew Jonathan Milne has been told he must sell a block of flats in North Wales after the existing leaseholders were not offered the chance to buy the building first, the county court has ruled. The judge has also reported Milne “to the Solicitors Regulation Authority for consideration and, if appropriate, investigation” afterContinue reading “Solicitor sent “disgraceful and inexcusable” communications in £40k property dispute, court finds”

Solicitor made “scandalous allegations” of attack by blogger which were “palpably untrue”, court told

SRA-regulated solicitor Andrew Milne claimed in a signed witness statement that not only did the defendants in a high court case he’s personally pursuing arrange for him to be attacked and left “close to death” — but that it was this humble blogger that did it!

FundingSecure “misrepresented” £650k loan, Financial Ombudsman secretly ruled

The peer-to-peer lending firm FundingSecure was ordered to refund an investor after making findings of misrepresentation and unfairness — But the platform entered administration before the investor could be compensated and the decision notice published.

Lendy: FCA ordered loan book review in 2017 after identifying “vital” failures

A senior associate at the FCA said in a confidential letter that “a number of weaknesses were identified [at Lendy] around the accuracy and quality of information” provided to retail investors some 10 months before the city regulator gave the ultimate seal of approval in the form of full authorisation. It took almost two yearsContinue reading “Lendy: FCA ordered loan book review in 2017 after identifying “vital” failures”

Lendy director ‘borrowed’ £350k from client account, 2016 FCA report reveals

A “strictly private and confidential” letter, exclusively seen by the mouseinthecourt, shows that the city regulator was aware, some 32-months before the FCA shut the platform down, that then co-director Tim Alastair Gordon, 44, had “borrowed” £350k from the company client account.

Lendy: Confidential 2017 FCA report reveals catalogue of concerns

A “confidential” letter sent from a senior associate at the Financial Conduct Authority has revealed that the city regulator was aware of an astonishing number of detailed concerns about failed peer-to-peer lending firm Lendy in June 2017. It took almost two years after the date of this letter before the FCA finally pulled the plugContinue reading “Lendy: Confidential 2017 FCA report reveals catalogue of concerns”

FundingSecure: Investors angry as FCA close investigation

Members of the public who invested in the failed peer-to-peer lending company FundingSecure, who stand to lose millions of pounds as a result of lax business practices, have expressed “total, complete and utter ANGER” after the FCA conclude their 5-year-investigation – with no public action taken.

Lendy director released from freezing injunction

Tim Alistair Gordon, 43, one of the two former directors of the failed peer-to-peer finance firm Lendy Ltd, has been released from a freezing injunction, the mouseinthecourt can exclusively reveal. The freezing injunction was imposed after accusations emerged that Mr Gordon, along with fellow director Liam Brooke, 40, had misappropriated company funds worth £6.5m viaContinue reading “Lendy director released from freezing injunction”

Judge tells jury: The FCA are not on trial [Day 18]

The judge in the Collateral trial that alleges two brothers misled thousands of investors by claiming to be authorised by the FCA has told jurors the authority is not on trial, a court heard. Accusations levelled at the Financial Conduct Authority suggested they engaged in a “face-saving exercise” as they failed to adopt a “robustContinue reading “Judge tells jury: The FCA are not on trial [Day 18]”

FCA admits they “left the window to the car open and someone was able to reach in”, jury hears [Day 17]

Any FCA case worker who “knew their onions” should have spotted Collateral’s name change on the interim permission register, jurors were told.  The 12 men and women deciding the fate of the former Collateral brothers were told their excuses were “nonsense” and “invented”, according to the prosecution. While the two defendants’ representatives tried to convinceContinue reading “FCA admits they “left the window to the car open and someone was able to reach in”, jury hears [Day 17]”

Jurors given ‘route to verdict’ in Collateral Fraud trial [Day 16]

The younger brother and former director of Collateral was the “driving force” and is as responsible for fraud as his eldest brother who changed the company’s name on the Financial Conduct Authority’s interim permission register, a court heard. Jurors will be asked to consider “family dynamics” and the relationship between the two brothers as theyContinue reading “Jurors given ‘route to verdict’ in Collateral Fraud trial [Day 16]”

Peter Currie – “I wanted everything to be correct, above board.” [Day 15]

The director of the failed peer to peer lending firm Collateral, accused of fraudulently changing the name of his company on the FCA interim permissions register, has told jurors that he “never thought for a minute what I’d done was wrong” adding that “what I’d done has traumatised me“

The FCA “don’t fully understand P2P as a market”, jurors hear [Day 14]

As one of the Currie brothers enters the witness box it’s revealed that as early as October 2016 the FCA had concerns that the peer-to-peer finance firm Collateral was being “potentially misleading” in aspects of its work. Jurors also heard of Peter Currie’s “devastation” when the FCA finally took action in January 2018.

Collateral Director tells jury: Rishi Sunak wants compensation for investors [Day 13]

The former director of Collateral has claimed Prime Minister Rishi Sunak complained to the Financial Conduct Authority requesting compensation for investors if the brothers who led the company are not convicted, a court heard. More than 340 letters of complaint and 15 MPs representing their constituents have requested the FCA investigate their handling of theContinue reading “Collateral Director tells jury: Rishi Sunak wants compensation for investors [Day 13]”

Collateral Director: “We are in court now as a bit of deflection of blame from the FCA”, jury hears [Day 12]

One of the directors of Collateral admitted administrators paid him a sum intended for staff wages and he kept it as a “part payment” of what he was owed by the company, a court heard. Andrew Currie, 57, accused of having the company pay out over £370,000 to him before it was forcibly closed, saidContinue reading “Collateral Director: “We are in court now as a bit of deflection of blame from the FCA”, jury hears [Day 12]”

“The FCA was as clear as mud”, Collateral director tells jury [Day 11 PM]

One of the directors of Collateral charged with fraud insists he always wanted the business out of the hands of the FCA, claiming: “I’m not a regulatory person“. Andrew Currie, 57, accused of having the company pay out over £370,000 to him before it was forcibly closed, also claims he lost the invoices for theContinue reading ““The FCA was as clear as mud”, Collateral director tells jury [Day 11 PM]”

Collateral Legal Advisor: The FCA “passed us from pillar to post throughout the process” [Day 7PM]

A compliance director for the failed finance firm Collateral UK Limited took the stand to explain the difficulties the company had when dealing with the Financial Conduct Authority. “There didn’t seem to be a proper handover process when it moved from one caseworker to the next” was one complaint the jury heard.

FCA: We had ‘access’ to the Collateral platform since October 2016 [Day 6]

An FCA case worker, in his first afternoon in the witness box, has confirmed that the FCA was given ‘access’ to the Collateral platform in October 2016, and had been given a copy of the company’s loan book. Concerned were raised that there appeared to be links between borrower companies and the Curries themselves.

Lendy launches breach of contract claim in £7m Homer & Mutton Row loans fiasco

The Joint Administrators’ of the failed peer-to-peer finance firm Lendy Ltd have in the last few days filed a breach of contract claim against Lee Baron Limited, a specialist property management company based in London, the mouseinthecourt can exclusively reveal. Lendy litigation is a lot like a London bus as this site broke the newsContinue reading “Lendy launches breach of contract claim in £7m Homer & Mutton Row loans fiasco”

Unbolted: Application to join corporate P2P lenders to claim fails

In 2016, Mr Andrew Jonathan Milne, described in court papers as “an experienced practising solicitor in the City of London”, took out a series of crowd funded loans facilitated by the peer-to-peer lender Open Access Finance Ltd trading as Unbolted. Behind these loans were 612 ‘unique lenders’ within which at least 604 were ordinary membersContinue reading “Unbolted: Application to join corporate P2P lenders to claim fails”

Mortgage broker was in “cahoots” with borrower as secret commission defence fails, court rules

The County Court has granted the failed Peer-to-Peer lender FundingSecure possession of an East London flat, and a money judgment of some £200k, after rejecting a borrowers claim that their mortgage broker had been bribed with a so-called secret commission.

FS Secret Commission Broker needs to “wake up and smell the coffee and realise their neck might be in the noose”, court told

A procedural hearing held in Central London earlier today has revealed a complicated web which looks set to be unravelled at a 5-day-trial, expected to begin on October 31st. In May 2022 the mouseinthecourt exclusively reported on the failed P2P company FundingSecure facing a new threat over an alleged ‘secret commission’ payment.

Judge delivered “fatally flawed” decision in Art Loan fraud recovery, Court of Appeal told

A High Court judgment made in favour of defrauded members of the public who crowdfunded loans to a disgraced art dealer was “an impermissible extension of the Court’s jurisdiction” and should be quashed, three senior Judges have been told.

“Them’s the rules” as Judge says permission required in FundingSecure ‘Secret Commission’ case

The County Court has heard that “incompetence” at a firm of solicitors prevented compliance with a court order, as the latest chapter in litigation affecting failed P2P firm FundingSecure unfolds.

O’Connor “was responsible for knowingly misleading both the FCA and investors” tribunal hears on 5th day

The Employment Tribunal has heard brief closing submissions in the matter of O’Connor v Brooke & Lendy. The claimant Mr Kieran O’Connor, former CFO, faced an an avalanche of allegations about his credibility “Not only did [he] knowingly mislead the FCA and investors about the prospects of the Homer Row Claim, but the Claimant alsoContinue reading “O’Connor “was responsible for knowingly misleading both the FCA and investors” tribunal hears on 5th day”

Did internal politics and a culture of confusion at the FCA fail P2P investors?

A trove of normally secret documents have revealed a comprehensive catalogue of missed warnings about the so-called peer-to-peer lending sector after disclosure in a recent case at the Employment Tribunal. This substantial investigation, exclusively carried out by the mouseinthecourt, shows that for a number of years significant concerns were raised – and seemingly not actedContinue reading “Did internal politics and a culture of confusion at the FCA fail P2P investors?”

Collateral investors given green light to receive £5.5m payment, court rules

Investors in the peer-to-peer lending platform Collateral (UK) Limited are set to receive their first pay out, over four years after the firm collapsed in early 2018. Some £5.5m has been identified by the Joint Liquidators, with payments expected to start within a matter of weeks.

Great Green Art Fraud – How FundingSecure lenders were scammed

In 2016 an art dealer took out a series of short-term loans supposedly secured against valuable works of art. Over 1,400 members of the public collectively crowdfunded the money using the now-failed peer-to-peer lending platform FundingSecure. In what is a truly remarkable story the art works promptly disappeared and the art dealer splurged the money,Continue reading “Great Green Art Fraud – How FundingSecure lenders were scammed”

FundingSecure face new threat over alleged ‘secret commission’ payment

Failed P2P platform FundingSecure faces a new threat of litigation over an allegation of a ‘secret commission’ payment. The ‘secret commission’ allegation is expected to be added as a counterclaim in on-going legal action listed for trial this Autumn. 

Unbolted: Court refuses to take “treacherous shortcut” across minefield without a map

In 2016, Mr Andrew Jonathan Milne, described in court papers as “an experienced practising solicitor in the City of London”, took out a series of crowd funded loans facilitated by Open Access Finance Ltd t/a Unbolted. Behind these loans were 612 ‘unique lenders’ within which at least 604 were ordinary members of the public.  AContinue reading “Unbolted: Court refuses to take “treacherous shortcut” across minefield without a map”

Lendy asks court to ‘grasp the nettle’ in multi-million pound loan dispute

In July 2016 the peer-to-peer lending company Lendy Ltd facilitated a loan to Q.E.D. Developments Limited.  Lendy were acting as agent for some 4,900 retail investors who collectively financed a facility of £14.3m, secured by a First Charge against a site known as the former Sunbeam Factory in Wolverhampton.  The loan description on the LendyContinue reading “Lendy asks court to ‘grasp the nettle’ in multi-million pound loan dispute”

Lendy CFO reported ‘serious financial irregularities’ before sacking, tribunal finds

Kieran O’Connor, former Chief Financial Officer of FCA Regulated firm Lendy, is pursuing a claim at the Employment Tribunal for unfair dismissal said to be as a result of disclosures concerning “serious financial irregularities” at the company.

Lendy Administrators seek repayment of so-called ‘Brankesmere Dividend’

The Joint Administrators of Lendy seek repayment of so-called ‘Brankesmere Dividend’ said to be worth over £861k as it is revealed £1.5m of FCA Remediation payments remain outstanding to members of the public involved with failed P2P firm Lendy. The Administrators of Lendy were recently given permission to join Brankesmere Limited as a defendant inContinue reading “Lendy Administrators seek repayment of so-called ‘Brankesmere Dividend’”

3 Day High Court trial adjourned as solicitor omits to find counsel

A three-day High Court trial was due to begin today with Judge Clive Sheldon QC set to consider whether a borrower on the failed P2P platform Lendy, is liable for over £3m of fees and penalties.  In written filings made to the court prior to today, the borrower was expected to argue that she wasContinue reading “3 Day High Court trial adjourned as solicitor omits to find counsel”

P2P Lender Assetz was ‘innocent victim’ to Fraud as borrowers declared bankrupt

Deputy ICC Judge Paul Greenwood granted a bankruptcy petition against two borrowers who obtained a £1.89m crowd-funded loan from P2P firm Assetz Capital. The borrowers were said to have been “knowing parties to a mortgage fraud exercised on the Assetz companies, which were innocent victims of that wrong“. An application for disclosure of the lendersContinue reading “P2P Lender Assetz was ‘innocent victim’ to Fraud as borrowers declared bankrupt”

The Secret Judgment hand down

The High Court blames “an over-sight of a court clerk” to explain why “there was no record of this case having been heard…This matter should have been listed and published on gov.uk but due to this over-sight this was not done. This has highlighted a serious training issue which will be addressed as a priorityContinue reading “The Secret Judgment hand down”

Lendy Directions – The Background

Lendy Ltd was a so-called peer-to-peer lending company which facilitated the crowd funding of loans by members of the public secured against property and other assets.  The company collapsed in May 2019 following action taken by the Financial Conduct Authority and RSM Restructuring Advisory LLP were appointed as administrators. The Administrators filed an application forContinue reading “Lendy Directions – The Background”

Lendy v Brooke & Others – The Marshall Island Mystery

In 2020 the former directors of the FCA Regulated peer-to-peer finance firm Lendy faced accusations of the misappropriated of £6.5 million via off-shore accounts in a civil claim at the High Court. The claim settled by means of a confidential agreement in October 2022 and it was subsequently revealed that the total amount repayable toContinue reading “Lendy v Brooke & Others – The Marshall Island Mystery”

Court considers ‘pollution’ of a P2P loan agreement

This hearing was an application by the Peer-to-Peer lending platform Open Access Finance Ltd (T/A Unbolted) for determination of a Preliminary Issue prior to trial.  The issue concerned the consequences resulting from the potential status of eight so-called corporate lenders who had participated (along with some 600 individual retail investors) in lending some £148k toContinue reading “Court considers ‘pollution’ of a P2P loan agreement”

Duff & Phelps apply to correct Duff order in Mederco Cardiff case

In September 2016 the peer-to-peer lending company Lendy Ltd facilitated a loan to Mederco (Cardiff) Ltd.  Lendy were acting as agent for some 3600 retail investors who collectively financed a facility of £6.4m, secured by a First Charge against a site with the benefit of planning permission in Mynachdy, Cardiff.  The loan description on theContinue reading “Duff & Phelps apply to correct Duff order in Mederco Cardiff case”

Fundingsecure director Richard Luxmore created “false and fraudulent documentation so as to conceal” payments of £8.15m, court papers claim

Following lengthy correspondence, a cache of court documents was finally released in the matter of Fundingsecure Ltd v Mark Damian Clarkson, a claim currently progressing at the Business and Property Courts in Manchester.

Assetz lenders face joinder to borrowers claim

This hearing concerned an application, made by the peer-to-peer lender Assetz SME Capital Limited, to bankrupt two debtors. The court was told Mr Steven James Budd and Ms Jean Shrimpton had debt outstanding from a mortgage secured against a residential property. ICC Judge Barber explained that at a non-attended pre-trial review in April 2020 ICCContinue reading “Assetz lenders face joinder to borrowers claim”

Application by Lendy Ltd struck out as an abuse of process

This was an application by the borrowing companies’ director Des Philips to set aside a Statutory Demand served upon him by Lendy Ltd (In Administration).  The court was told loans advanced by Lendy Ltd had defaulted and they sought to rely upon the Personal Guarantee offered by the director to repay them.

Directions for FundingSecure Limited – Part 1

This was a directions hearing concerning the matter of the so-called Peer-to-peer lending company FundingSecure Limited (in administration). FundingSecure acted as an agent in the facilitation of loans between borrowers and often many hundreds of retail investors. In October 2019 the company entered entered administration leaving some £80m to 3,500 investors outstanding.

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