IG Index Plc v Colley & Ors

IG Index Plc v Colley & Ors

Mr Colley, as a trusted employee, perpetrated a systematic fraud by inserting false dividends into IG Index's pricing system to benefit accomplice clients, who knowingly participated and profited. The client Defendants who acted in concert with Mr Colley are liable for dishonest assistance and knowing receipt. Account holders whose agents (e.g., family members) perpetrated the fraud are vicariously liable. IG Index is entitled to damages for breach of fiduciary duty, dishonest assistance, knowing receipt, and under the manifest error clauses, which are enforceable even where the error is caused by fraud. The manifest error clause does not require the error to be inadvertent; deliberate...

Parties
Claimant: IG Index PLC; First Defendant: James Colley; Second Defendant: Kim Benn; Third Defendant: Thomas Nathaniel Benn; Fourth Defendant: Annie Cooper; Fifth Defendant: Mark Cowan; Sixth Defendant: Stuart Daltry; Seventh Defendant: Michelle Dove; Eighth Defendant: Fenton Goldstein; Ninth Defendant: Rick Ian Ilett; Tenth Defendant: Thomas Osborn; Eleventh Defendant: Roderick Austin Regan; Twelfth Defendant: Christopher Slaney; Thirteenth Defendant: Adam Teller; Fourteenth Defendant: Sally Teller; Fifteenth Defendant: Tzvia Teller; Sixteenth Defendant: Ben Rossfield
Jurisdiction
England and Wales
Judgment Date
07 March 2013
Procedural Posture
Civil (commercial Fraud) / Final Judgment After Full Trial
Outcome
Judgment for the Claimant (IG Index PLC) against Mr Colley and the client Defendants found to have acted in concert with him. Judgment for IG Index against account holders whose agents perpetrated the fraud. IG Index entitled to damages for breach of fiduciary duty, dishonest assistance, knowing receipt, and under...
Legal Topics
Dishonest Assistance, Knowing Receipt, Vicarious Liability, Manifest Error Clauses, Spread Betting Fraud, Breach of Fiduciary Duty, Agency Law, Restitution, Damages for Fraud
Commercial Law Fraud Equity and Trusts Contract Law Employment Law Dishonest Assistance Knowing Receipt Vicarious Liability +6 more

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 5 Authorities cited 17 Party arguments 2 Amounts and remedies 7
Sign in to unlock

Parties

IG Index PLC

Claimant

James Colley

First Defendant

Kim Benn

Second Defendant

Thomas Nathaniel Benn

Third Defendant

Annie Cooper

Fourth Defendant

Mark Cowan

Fifth Defendant

Stuart Daltry

Sixth Defendant

Michelle Dove

Seventh Defendant

Fenton Goldstein

Eighth Defendant

Rick Ian Ilett

Ninth Defendant

Thomas Osborn

Tenth Defendant

Roderick Austin Regan

Eleventh Defendant

Christopher Slaney

Twelfth Defendant

Adam Teller

Thirteenth Defendant

Sally Teller

Fourteenth Defendant

Tzvia Teller

Fifteenth Defendant

Ben Rossfield

Sixteenth Defendant

Procedural Posture

Civil (commercial Fraud) / Final Judgment After Full Trial

Legal Issues

  1. 1 Whether Mr Colley perpetrated a fraud against IG Index by inserting false dividends into the pricing system to benefit accomplice clients.
  2. 2 Whether the client Defendants acted in concert with Mr Colley and participated in the fraud.
  3. 3 Whether IG Index is entitled to damages for breach of fiduciary duty, dishonest assistance, knowing receipt, and/or under manifest error clauses.

Ratio Decidendi

Mr Colley, as a trusted employee, perpetrated a systematic fraud by inserting false dividends into IG Index's pricing system to benefit accomplice clients, who knowingly participated and profited. The client Defendants who acted in concert with Mr Colley are liable for dishonest assistance and knowing receipt. Account holders whose agents (e.g., family members) perpetrated the fraud are vicariously liable. IG Index is entitled to damages for breach of fiduciary duty, dishonest assistance, knowing receipt, and under the manifest error clauses, which are enforceable even where the error is caused by fraud. The manifest error clause does not require the error to be inadvertent; deliberate...

Court Disposition

Judgment for the Claimant (IG Index PLC) against Mr Colley and the client Defendants found to have acted in concert with him. Judgment for IG Index against account holders whose agents perpetrated the fraud. IG Index entitled to damages for breach of fiduciary duty, dishonest assistance, knowing receipt, and under...

Orders

  • Damages to be assessed or agreed against Mr Colley, Mr Regan, Mr Slaney, Mr Teller, Mrs Benn, Mr Osborn, and other relevant Defendants.
  • Declaration that IG Index is entitled to amend the opening level of relevant bets under the manifest error clause (except as against Mr Teller).