London Capital Ran a Mini-Bond Ponzi Scheme, UK Judge Rules (1)

Bosses at London Capital & Finance Plc ran a ponzi scheme to collect hundreds of millions of pounds from retail investors, spending much of it on themselves, a London judge ruled.

LCF’s former director Michael Andrew Thomson, shadow director Spencer Golding, and several associates were liable for violating their duties to the company and must pay compensation, the court ruled on a claim brought by the company’s joint administrators.

The company’s collapse in 2019, known as the mini-bond scandal, wiped out £237 million ($299 million) invested in illiquid securities by about 11,000 customers. The fallout led to criticism of the ...