London Capital & Finance fraud was ‘biggest ever Ponzi scheme’

Investors thought they were putting money into UK small and medium-sized businesses, the High Court heard.

Instead, Mr Justice Miles concluded that money raised was misappropriated to make payments to people connected to the company.

LCF operated as a Ponzi scheme to pay old bondholders with new bondholder’s money before going into administration in 2019.

A hearing in November found CEO Michael Thomson and associate Spencer Golding liable for breaches of duties as directors. The judge on Friday said they were liable for £180m.

John Russell-Murphy, from Eastbourne, Paul Careless and Robert Sedgwick, were liable for £211m, the court heard.

Previous court documents stated that the directors used money to buy property, supercars, pay for luxury travel and make donations to the Conservative Party.