New probe into PPI claim scam
Creditors of Client Connection Limited have been told that they won’t get a penny back.
This company conned victims of PPI misselling into paying £359 for a worthless claims management service.
The Swansea operation, which traded as Lifestyle Claims and Money Claiming Experts, collapsed in 2012.
That year alone it took £4.4million in fees while its shareholders pocketed £395,000 in dividends.
There are 2,683 creditors, owed more than £3million. The biggest loser is Barclays Bank, which paid £2million in credit card chargeback.
Now the bank has taken legal action against the person who was supposed to find where the money has gone – Birmingham administrator Gagen Sharma.
Mr Justice Norris in the High Court has issued a damning judgment on her efforts, saying her “entire investigation process had taken 3.6 hours”.
“In none of her reports to creditors had Ms Sharma given any details of any of the investigations which she had undertaken or of their outcome,” he said.
“It is not possible to be confident that Ms Sharma got to the bottom of events so that she could explain to the creditors why they were getting nothing in respect of their debts.”
Infuriatingly, she told creditors her report on the Client Connection directors, George Stanton and Ryan Stanton, was confidential.
However, some light might be finally shone on this murky episode – Barclays won its battle to install a new liquidator.