Another success for Redress
Redress Solutions agreed to provide finance to joint liquidators of an investment company whose creditors included a major international bank (the “Bank”).
A fraudster, an ex-officer of the Bank approached one of its clients, posing as a financial consultant, and offered to set up an investment company for the client to be administered by a corporate services provider. The consultant would recommend investments to the nominee directors supplied by the corporate services provider. It was proposed that the investment vehicle be used to make a number of highly promising private equity investments which would be managed by the consultant on the client’s behalf. The client agreed and provided significant funds to the investment vehicle. The consultant obtained funds from the nominee directors, supposedly for genuine investments but in reality for his own personal use. After the embezzlement was discovered, the investment company was eventually placed into liquidation and the liquidators sought funding from Redress to bring a claim against both the consultant and the corporate services provider.
Having secured funding from Redress, the liquidators were able to bring the claim and to hire the services of a leading law firm to conduct the case. The action eventually settled and the liquidators obtained a highly significant settlement.
Commenting on the Redress’s involvement on the case, one of the insolvency practitioners who brought the claim and who is also a senior partner in a leading accountancy practice said:
“Redress is a high calibre litigation funding offering. It has proved to be the most responsive litigation funder from the initial approach, making a decision to fund and then providing the necessary funding. Redress has an incisive grasp of case facts, understands complex matters and is not shy of putting its money behind a strong claim, with entrenched opposition, to successful effect.”