Group Seven Ltd & Anor v Nasir & Ors [2017] EWHC 2466 (Ch) (06 October 2017)

Group Seven Ltd & Anor v Nasir & Ors [2017] EWHC 2466 (Ch) (06 October 2017)

The court found that Mr Nasir and Mr Yi conspired with others to defraud Group Seven and are liable for damages. Notable and Mr Landman dishonestly assisted breaches of trust and are liable for unconscionable receipt of trust monies. Mr Landman was found to have lied to the court and acted dishonestly. Mr Meduri was not found to be dishonest. Mr Louanjli was found to have given untruthful evidence but the court did not accept all claims against him. LLB was not found vicariously liable for Louanjli's acts. Damages were assessed at €9,179,850.48 against Mr Nasir and Mr Yi. Claims for unconscionable receipt against Notable and Landman succeeded for £219,150.90 and £218,304.28 respectively.

Citation
[2017] EWHC 2466 (Ch)
Parties
Claimant: Group Seven Limited; Claimant: Rheingold Management Inc; Claimant: Equity Trading Systems Limited (formerly Larn Ltd); Defendant: Ali Nasir; Defendant: Jong-Kang Yi; Defendant: Notable Services LLP; Defendant: Martin Landman; Defendant: Francesco Meduri; Defendant: LLB Verwaltung (Switzerland) AG (formerly Liechtenstein Landesbank (Switzerland) Ltd); Defendant: Othman Louanjli; Defendant: Sebastien Elbied; Defendant: Renaissance Limited; Defendant: Bridge Limited
Jurisdiction
England and Wales
Judgment Date
06 October 2017
Procedural Posture
Chancery Division Civil Fraud/conspiracy and Trust Claims (consolidated Actions) / First Instance, Post Trial Judgment
Outcome
Judgment for claimants in part; damages awarded against Mr Nasir and Mr Yi; Notable and Landman liable for dishonest assistance and unconscionable receipt; Meduri not found dishonest; LLB not vicariously liable; other claims dismissed or not established.
Legal Topics
Dishonest Assistance, Unconscionable Receipt, Conspiracy to Defraud, Vicarious Liability, Deceit, Money Laundering, Breach of Trust
Civil Fraud Equity and Trusts Banking Law Professional Negligence Dishonest Assistance Unconscionable Receipt Conspiracy to Defraud Vicarious Liability +3 more

Case Brief

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Parties

Group Seven Limited

Claimant

Rheingold Management Inc

Claimant

Equity Trading Systems Limited (formerly Larn Ltd)

Claimant

Ali Nasir

Defendant

Jong-Kang Yi

Defendant

Notable Services LLP

Defendant

Martin Landman

Defendant

Francesco Meduri

Defendant

LLB Verwaltung (Switzerland) AG (formerly Liechtenstein Landesbank (Switzerland) Ltd)

Defendant

Othman Louanjli

Defendant

Sebastien Elbied

Defendant

Renaissance Limited

Defendant

Bridge Limited

Defendant

Procedural Posture

Chancery Division Civil Fraud/conspiracy and Trust Claims (consolidated Actions) / First Instance, Post Trial Judgment

Legal Issues

  1. 1 Whether defendants dishonestly assisted breaches of trust relating to €100 million fraudulently obtained from Group Seven.
  2. 2 Whether certain defendants are liable for unconscionable receipt of trust monies.
  3. 3 Whether there was a conspiracy to defraud Group Seven.

Ratio Decidendi

The court found that Mr Nasir and Mr Yi conspired with others to defraud Group Seven and are liable for damages. Notable and Mr Landman dishonestly assisted breaches of trust and are liable for unconscionable receipt of trust monies. Mr Landman was found to have lied to the court and acted dishonestly. Mr Meduri was not found to be dishonest. Mr Louanjli was found to have given untruthful evidence but the court did not accept all claims against him. LLB was not found vicariously liable for Louanjli's acts. Damages were assessed at €9,179,850.48 against Mr Nasir and Mr Yi. Claims for unconscionable receipt against Notable and Landman succeeded for £219,150.90 and £218,304.28 respectively.

Court Disposition

Judgment for claimants in part; damages awarded against Mr Nasir and Mr Yi; Notable and Landman liable for dishonest assistance and unconscionable receipt; Meduri not found dishonest; LLB not vicariously liable; other claims dismissed or not established.

Orders

  • Damages of €9,179,850.48 awarded against Mr Nasir and Mr Yi to Rheingold.
  • Notable Services LLP to pay £219,150.90 for unconscionable receipt.