LAWFUEL – The Lawyer Newswire – Philip Marshall QC, of Serle Court, acted for KPMG, the administrators of Lexi Holdings Plc, a company previously operated by Shaid Luqman, who had featured in The Sunday Times Rich List. Luqman was sentenced to 18 months for breaching court orders for the delivery of documents and assets in proceedings relating to an alleged international fraud on the company, which went into liquidation with debts of more than £100 million.
What were the main challenges in this case; will it make it easier for fraud investigators to succeed?
The main challenges arose out of the destruction or concealment of potentially important evidence. The administrators had to seek orders for the production of documents and information from third parties who dealt with the insolvent company. Fortunately, the information was obtained swiftly and – due to the forensic work by the administrators in Manchester and the solicitors, DLA Piper, in London – the court was presented with evidence that the judge on the committal hearing held was compelling. It sends a clear message to defendants in fraud cases: they cannot ignore a freezing order.