Background
Wey Bridging were a bridging finance company, set up in 2006 to offer finance primarily to individuals. On the surface, the company was trading very successfully, both prior to and after the financial downturn.
The company attracted investment from various High Net Worth (HNW) individuals, who relied on due diligence conducted through professionals, and the auditors of the business.
Issue
In 2010 it became clear that the company had unexplained tax liabilities, which led to further investigations. After examining the company’s trading history, the bank placed the business into Administration.
Quantuma were appointed Administrators, and during the course of investigations it was concluded that the Directors of the Company had used a “cross-firing” system in order to fabricate regular trading, whilst removing significant funds from the company.
Outcome
Our team undertook a detailed forensic examination of the company’s books and records, both electronic and hard copy, in relation to the way in which the company had transacted. The information gathered was used to pursue claims against a variety of parties.
This included various successful claims: for fraudulent misrepresentation by various investors against the Directors of the company; claims against various genuine debtors, the fraudulent Directors and one of the stakeholders; claims against two auditors, including one ‘big four’ in relation to their failure to detect the fraud during their audit process.
