Independent Trustee Service Ltd v GP Noble Trustees Ltd & Ors

Independent Trustee Service Ltd v GP Noble Trustees Ltd & Ors

The Defendants, as trustees and their associates, breached trust and fiduciary duties by orchestrating and participating in a fraudulent scheme to misapply pension scheme assets. The recipients of the assets were not bona fide purchasers for value, and the so-called Bonds issued in exchange were worthless and instruments of fraud. The Claimant is entitled to proprietary remedies, tracing, and equitable compensation. Dishonest assistance and knowing receipt were established against the principal actors and associated entities. The trustees are liable for breach of trust and must account for the assets. The extent of liability for some Defendants is reserved for further inquiry.

Parties
Claimant: Independent Trustee Service Ltd; Defendant: GP Noble Trustees Ltd; Defendant: BDC Trustees Ltd; Defendant: Graham Pitcher; Defendant: Gary Cordell; Defendant: Peter Malmstrom; Defendant: Anthony James Morris; Defendant: Alexander Starkey; Defendant: Christopher Webb; Defendant: Aspect Invest & Finance Ltd; Defendant: Whitepoint Ltd; Defendant: South East Asia Real Estate (Thailand) Co Ltd; Defendant: Amac Asset Management & Consultants Ltd; Defendant: Number Thirty One SA; Defendant: La Matze Consultants SA; Defendant: La Matze Real Estate SA; Defendant: Multiple & Unilateral Financial Futures (Thai Investments) Ltd; Defendant: Mutual Financial Futures (Australia) Pty Ltd; Defendant: Multiple & Unilateral Financial Futures Ltd; Defendant: Morris Family Holdings Ltd; Defendant: Newdale Investments Ltd; Defendant: Edgerbury Investments Ltd; Defendant: Caprio International Ltd; Defendant: Davidia Global Ltd; Defendant: Line Trust Corporation Ltd; Defendant: Glencalvie Ltd; Defendant: Benessia Global Ltd; Defendant: Shellwind Holding Ltd
Jurisdiction
England and Wales
Judgment Date
01 July 2010
Procedural Posture
Civil / Judgment After Trial (liability Phase; Some Claims Adjourned)
Outcome
Judgment for Claimant (ITS) against principal Defendants; proprietary and tracing relief granted; further inquiry ordered as to quantum and extent of liability for some Defendants; some claims adjourned.
Legal Topics
Breach of Trust, Dishonest Assistance, Knowing Receipt, Tracing, Trustee Duties, Negligence, Proprietary Claims, Equitable Compensation
Trusts Pensions Equity and Fiduciary Law Fraud Company Law Breach of Trust Dishonest Assistance Knowing Receipt +5 more

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Parties

Independent Trustee Service Ltd

Claimant

GP Noble Trustees Ltd

Defendant

BDC Trustees Ltd

Defendant

Graham Pitcher

Defendant

Gary Cordell

Defendant

Peter Malmstrom

Defendant

Anthony James Morris

Defendant

Alexander Starkey

Defendant

Christopher Webb

Defendant

Aspect Invest & Finance Ltd

Defendant

Whitepoint Ltd

Defendant

South East Asia Real Estate (Thailand) Co Ltd

Defendant

Amac Asset Management & Consultants Ltd

Defendant

Number Thirty One SA

Defendant

La Matze Consultants SA

Defendant

La Matze Real Estate SA

Defendant

Multiple & Unilateral Financial Futures (Thai Investments) Ltd

Defendant

Mutual Financial Futures (Australia) Pty Ltd

Defendant

Multiple & Unilateral Financial Futures Ltd

Defendant

Morris Family Holdings Ltd

Defendant

Newdale Investments Ltd

Defendant

Edgerbury Investments Ltd

Defendant

Caprio International Ltd

Defendant

Davidia Global Ltd

Defendant

Line Trust Corporation Ltd

Defendant

Glencalvie Ltd

Defendant

Benessia Global Ltd

Defendant

Shellwind Holding Ltd

Defendant

Procedural Posture

Civil / Judgment After Trial (liability Phase; Some Claims Adjourned)

Legal Issues

  1. 1 Whether the Defendants (trustees and others) breached trust and fiduciary duties in the misapplication of pension scheme assets
  2. 2 Whether Defendants are liable for dishonest assistance and/or knowing receipt
  3. 3 Whether proprietary remedies and tracing are available to recover misapplied assets

Ratio Decidendi

The Defendants, as trustees and their associates, breached trust and fiduciary duties by orchestrating and participating in a fraudulent scheme to misapply pension scheme assets. The recipients of the assets were not bona fide purchasers for value, and the so-called Bonds issued in exchange were worthless and instruments of fraud. The Claimant is entitled to proprietary remedies, tracing, and equitable compensation. Dishonest assistance and knowing receipt were established against the principal actors and associated entities. The trustees are liable for breach of trust and must account for the assets. The extent of liability for some Defendants is reserved for further inquiry.

Court Disposition

Judgment for Claimant (ITS) against principal Defendants; proprietary and tracing relief granted; further inquiry ordered as to quantum and extent of liability for some Defendants; some claims adjourned.

Orders

  • Monies held in court to be paid out to ITS' solicitors immediately.
  • Declaration of breach of trust and fiduciary duty by GPN and BDC.