Dispute Resolution News
'7 to 7 Man' Wins 20 Million - Veronica Howley
Top city trader Rajesh Gill, known as the ‘7 to 7 man' for turning £7,000.00 into 7 million in just 2 years has won a landmark victory against his broker, Matthew Bomford of MF Global, after the High Court found that he had duped Mr Gill into believing investments, placed with the broker, were earning him a fortune. In March 2002, Mr Gill, (one of the most successful day traders in the world), discovered that what he believed to be a £10 million pound investment fortune, was actually worth less than £500,000.00. Mr Gill lost £3.2 million from his investments over the course of a single year after MF Global failed to execute dozens of his trades and compounded matters by making unauthorised transactions.
The High Court judge, Mr Justice Flaux, branded Mr Bomford a "fraudster" and a "persistent and inveterate liar", finding that he had fraudulently misrepresented the true position to Mr Gill because he stood to earn £2.7 million in commission (Mr Bomford himself earned £500,000.00 in bonuses over the course of a single year).
In October 2001, Mr Bomford had advised Mr Gill that the balance on his account was £9.2 million. The true balance was actually well below £3 million. Mr Bomford fraudulently misrepresented that Mr Gill's account was "blindingly excellent". Mr Gill only found out the truth when he spoke to another employee of MF Global on Mr Bomford's day off.
Bomford pretended his father had died and that, grief stricken, he had muddled the figures for Mr Gill's account. The judge was less than impressed when it emerged that at the time the "muddle" had taken place, Bomford's father had been dead for 8 months and he was on holiday in Barbados. MF Global only admitted fraudulent misrepresentation after the Court heard Bomford's evidence. Having taken into account an earlier (undisclosed) payment made to Mr Gill. Mr Justice Flaux made a provisional award of £19.75 million, during the course of the litigation.
Whilst not quite a victory for the little guy, this is, in many respects, a David and Goliath case. MF Global (then Man Financial) are a global practice and it took Mr Gill 7 years to get justice in the face of a complete denial of his claim.
MF Global intend to appeal against the level of damages. Mr Bomford may face prosecution for perjury.
If you would like advice on a similar issue or any other matter concerning professional negligence, please contact Veronica Howley, head of our Dispute Resolution department at Lees Solicitors LLP on 0151 647 9381.
Veronica Howley
This article provides a summary of a recent case/change in law/news item. It is intended for general information purposes only and is not to be relied upon. It does not constitute legal advice and should not be treated under any circumstances as a substitute for legal advice. Lees Solicitors LLP does not accept any responsibility for any loss that may arise from reliance upon the information contained within this article. The copyright in this article is owned by Lees Solicitors LLP and permission must be sought before reproduction or publishing.
Back to Dispute Resolution News
Case Studies
