Fraudulent Misrepresentation

Bell Yard represented independent trader Rajesh Gill in his successful fraudulent misrepresentation claim against his former broker, MF Global (Parabola Investments Limited* v MF Global UK Limited).

After an extremely prosperous start to his trading career, Mr Gill transferred his high-volume account to Union Cal (later acquired by MF Global), managed by an individual broker, Matthew Bomford. Unbeknown to Gill, his account immediately began losing significant funds, allegedly as a result of a repeated and deliberate series of failings and dishonesty at the hands of Mr Bomford. Bell Yard was instructed to protect Mr Gill’s reputation in the face of aggressive denials as to MF Global’s their liability and unfound assertions by MF Global as to Mr Gill’s competency.

Mr Gill first lodged his claim in 2006, having spent the previous four years investigating the cause of the account’s haemorrhaging fund balance. Ever since Mr Gill discovered the losses in 2002, he showed great tenacity in a protracted battle to try to get MF Global to take responsibility and accept liability in respect of fraud. However, barely two weeks into the five-week High Court trial, following Bomford’s illusory testimony, MF Global finally capitulated and admitted vicarious liability for fraudulent misrepresentation and deceit. This change of heart avoided the need for MF Global’s senior management to appear in court to give sworn evidence in a case that had, through Bell Yard’s efforts, attracted an increasingly high profile in the financial media.

In May 2009, the High Court awarded Mr Gill just under £20 million compensation in what was a landmark ruling for a lost profits case. Bell Yard worked to ensure this award received wide post-verdict coverage. The judgment was unsuccessfully appealed by the defendant.

Mr Gill was represented by Peter Atkinson of Gordon Dadds Solicitors and Neil Kitchener QC of One Essex Court Chambers.

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