Bannatyne forks out ‘seven-figure’ sum to gag former right-hand man
DRAGONS’ DEN star Duncan Bannatyne has settled a £10million lawsuit that threatened to expose embarrassing details of his past.
And the tycoon has stopped his former right-hand man Nigel Arm- strong from speaking about the case. The Mail on Sunday revealed last year that legal papers lodged at the High Court by Armstrong – the former chief executive of Bannatyne Fitness – showed Bannatyne lied to the court in his bitter divorce from Joanne McCue in 2012.
Bannatyne tried to stop The Mail on Sunday reporting that he made misleading statements and forged a vital document to hide assets from his wife.
He repeatedly claimed that he ‘expected to win’ the case against Armstrong but has now settled for what is believed to be a seven-figure sum and a strict confidentiality agreement.
It is the latest drama for the 67-yearold grandfather in a year in which he was accused of ‘revenge porn’ threats against an ex-girlfriend. His financial director Chris Watson was also jailed for an £8million fraud against Bannatyne Fitness, and profits nosedived from £9.9million to £3million.
Last week Watson was ordered to pay back £484,338 in compensation.
Our six-week battle to publish the contents of the High Court petition, outlining Mr Armstrong’s case for unfair prejudice and wrongful dismissal, unearthed potentially damaging and embarrassing details of Bannatyne’s alleged past conduct.
They included disputed claims of setting up offshore companies and bank accounts in tax havens including British Virgin Islands and Monaco – after condemning fellow ex-Dragon James Caan for basing businesses abroad – and using company coffers to pay his family and fund parts of his divorce.
The multi-million-pound divorce – after which Bannatyne branded his ex-wife Joanne ‘a gold-digger’ – formed the backdrop to Armstrong’s case. It centred on a £6million severance package agreed verbally between Bannatyne and Armstrong but never approved by the company’s board.
When Joanne, 49, launched her divorce action, Bannatyne claimed it had been agreed by the board, reducing the value of assets she could claim.
He illegally forged board minutes that boosted Armstrong’s package to £10 million. It went in his financial statement to the divorce court, which he signed with a ‘statement of truth’ form. Such forms warn that deliberate untruths could result in fraud or contempt of court proceedings.
Although Bannatyne had to admit the lies and forgery, he insisted there was no other wrongdoing.
Mr Armstrong declined to comment last night, but a friend said: ‘Nigel has a lot of options and his focus now is forward not back.’ Mr Bannatyne also declined to comment.