socialmedian: MF Global ordered to pay former client £20m after trading 'deceit'

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MF Global ordered to pay former client £20m after trading 'deceit'

Submitted by Priyankagill

May 07, 2009

Summary

A High Court judge yesterday told MF Global to pay damages of up to £20m to a former client who lost millions of pounds after being "ensnared in a web of deceit" spun by a former employee of the City brokerage firm, previously known as Man Financial.

Rajesh Gill, a prolific day trader, unknowingly racked up hefty losses in 2001 and 2002, after Mathew Bomford, his account manager at MF, created a "parallel universe", telling Mr Gill that he was trading profitably when he was in fact losing money.

"The overall effect was to create the intricate web of deceit, perpetrated over a lengthy period, that the trading being carried out was profitable and was building up a fund worth approaching £10m by the time the truth came out, whereas in fact the fund was diminishing rapidly throughout the period of deceit," Mr Justice Flaux said in his judgment yesterday. Read the full article

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