Mercy Global Consult Ltd v Adegbuyi-Jackson & Ors [2023] EWHC 3203 (Ch) (13 December 2023)

Mercy Global Consult Ltd v Adegbuyi-Jackson & Ors [2023] EWHC 3203 (Ch) (13 December 2023)

The court found a large-scale VAT fraud orchestrated by Mr Adegbuyi-Jackson, with deliberate under-declaration and diversion of VAT, supported by unchallenged evidence. Directors who failed to prevent or detect the fraud were in breach of duty and liable for equitable compensation. Mrs Adegbuyi-Jackson and corporate defendants were liable for knowing receipt and/or dishonest assistance where they received or handled proceeds of the fraud with requisite knowledge. Proprietary claims to assets acquired with traceable proceeds were established where the evidence permitted tracing. The court awarded equitable compensation and made declarations of proprietary interest, subject to credits for...

Citation
[2023] EWHC 3203 (Ch)
Parties
Claimant: Mercy Global Consult Ltd (In Liquidation); First Defendant: Mr Abayomi Adegbuyi-Jackson; Second Defendant: Alain Ludovic Boisdur; Third Defendant: Mr Michael Osemwegie; Fourth Defendant: Mr Abayomi Ayankunle Olunlade; Fifth Defendant: Mrs Gift Enoch; Sixth Defendant: Mrs Funmilayo Ojuolape Adegbuyi-Jackson; Seventh Defendant: Cornerstone Global System UK Ltd; Eighth Defendant: Mercy Global Properties Solutions Ltd; Ninth Defendant: Dominion Payroll Solutions Ltd; Tenth Defendant: Olugbenga Titus Jones Somade; Eleventh Defendant: Ojuolape Arcade Ltd; Twelfth Defendant: Adekanmi (also known as Kanmi) Olaolu Adedire; Thirteenth Defendant: DMO Consultancy & Accounting Services Ltd; Fourteenth Defendant: Purpose IP Consult Ltd; Fifteenth Defendant: Hanstal Consulting Limited
Jurisdiction
England and Wales
Judgment Date
13 December 2023
Procedural Posture
Civil Fraud / Company Law / Directors' Duties / Tracing / Liquidation / Final Judgment After Trial (default Judgment Against Most Defendants, Some Settlements, Proprietary and Personal Claims Determined)
Outcome
Judgment for the claimant against most defendants; claims dismissed against Mr Somade; quantum and credits for recoveries to be finalised after further submissions.
Legal Topics
Director's Duties, Knowing Receipt, Dishonest Assistance, Tracing, Proprietary Claims, VAT Fraud, Equitable Compensation, Breach of Fiduciary Duty
Company Law Insolvency Fraud Equity and Trusts Civil Procedure Director's Duties Knowing Receipt Dishonest Assistance +5 more

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Parties

Mercy Global Consult Ltd (In Liquidation)

Claimant

Mr Abayomi Adegbuyi-Jackson

First Defendant

Alain Ludovic Boisdur

Second Defendant

Mr Michael Osemwegie

Third Defendant

Mr Abayomi Ayankunle Olunlade

Fourth Defendant

Mrs Gift Enoch

Fifth Defendant

Mrs Funmilayo Ojuolape Adegbuyi-Jackson

Sixth Defendant

Cornerstone Global System UK Ltd

Seventh Defendant

Mercy Global Properties Solutions Ltd

Eighth Defendant

Dominion Payroll Solutions Ltd

Ninth Defendant

Olugbenga Titus Jones Somade

Tenth Defendant

Ojuolape Arcade Ltd

Eleventh Defendant

Adekanmi (also known as Kanmi) Olaolu Adedire

Twelfth Defendant

DMO Consultancy & Accounting Services Ltd

Thirteenth Defendant

Purpose IP Consult Ltd

Fourteenth Defendant

Hanstal Consulting Limited

Fifteenth Defendant

Procedural Posture

Civil Fraud / Company Law / Directors' Duties / Tracing / Liquidation / Final Judgment After Trial (default Judgment Against Most Defendants, Some Settlements, Proprietary and Personal Claims Determined)

Legal Issues

  1. 1 Whether there was a large-scale VAT fraud perpetrated by Mr Adegbuyi-Jackson through Mercy Global Consult Ltd
  2. 2 Whether the directors (including Mr Adegbuyi-Jackson, Mr Boisdur, Mr Osemwegie, Mrs Enoch) breached their duties and are liable for equitable compensation
  3. 3 Whether Mrs Adegbuyi-Jackson and various corporate defendants are liable for knowing receipt and/or dishonest assistance

Ratio Decidendi

The court found a large-scale VAT fraud orchestrated by Mr Adegbuyi-Jackson, with deliberate under-declaration and diversion of VAT, supported by unchallenged evidence. Directors who failed to prevent or detect the fraud were in breach of duty and liable for equitable compensation. Mrs Adegbuyi-Jackson and corporate defendants were liable for knowing receipt and/or dishonest assistance where they received or handled proceeds of the fraud with requisite knowledge. Proprietary claims to assets acquired with traceable proceeds were established where the evidence permitted tracing. The court awarded equitable compensation and made declarations of proprietary interest, subject to credits for...

Court Disposition

Judgment for the claimant against most defendants; claims dismissed against Mr Somade; quantum and credits for recoveries to be finalised after further submissions.

Orders

  • Equitable compensation awarded against Mr Adegbuyi-Jackson (£24,364,399.60, subject to credit for recoveries)
  • Equitable compensation awarded against Mr Boisdur (£8,761,651.49), Mr Osemwegie (£23,113,666.05), Mrs Enoch (£5,951,397) for breach of duty