Court documents obtained by 9fin shed new light on the schemes allegedly used by Paresh Raja, the director of collapsed UK bridging lender Market Financial Solutions, to defraud institutional and high-net-worth funders — including loans to companies secretly controlled by Raja, forged loan documents, and double-pledged collateral.
The court filings were submitted in support of an application to place one of the allegedly related borrowers, a company called Twinwin Limited, into administration in an effort to recoup the misappropriated funds.
The court was told that Twinwin had borrowed money from MFS funding vehicles against the same properties that other borrowers had mortgaged, and in some cases had used loan documents supposedly drafted by lawyers who now claim they have never seen them before.
On top of that, the applicants claimed that Twinwin had skimmed off a profit by charging end clients higher interest rates than it was paying on loans assigned to the funding vehicles, and that recent mortgage repayments that were due to go to the institutional funder had instead been siphoned off.
“While the full picture is still emerging, the evidence to date suggests that [the rights of the funders] were systematically disregarded, with the consequence...
