Suspicious activity at collapsed savings firm

SAVERS’ funds from collapsed trading firm London Capital & Finance were used to buy a helicopter and a rundown Cornish holiday cottage, administrators have said.

Cash invested by 11,500 people – many of them elderly – is said to have flowed though the bank accounts of LCF boss Andy Thomson and Simon Hume-Kendall, chairman of its biggest borrower London Oil & Gas.

LCF collapsed earlier this year owning £237m to savers.

Administrator Smith & Williamson said that it is now chasing Thomson, Hume-Kendall and others linked to LCF to try and recover investors’ funds.

In its first report since taking over the failed company, S&W said: ‘There are a number of highly suspicious transactions involving a small group of connected people which have led to large sums of the bondholders’ money ending up in their personal possession or control.

‘We are pressing these people to return those funds to us for the benefit of the bondholders and, failing this, we will pursue those individuals, as appropriate, for recovery of those sums.’

It comes after the Serious Fraud office arrested four people as part of a probe into LCF’s failure.

LCF flogged Isas and special bonds offering returns of 8pc, but went bust in January after the City watchdog stopped it from taking in any new money.

As well as investments in a helicopter and Cornwall, cash is also said to have been used to buy development land in the Dominican Republic.