MPs demand probe into £200 million share fiasco
MEMBERS of Parliament are demanding a probe into a debacle involving thousands of small investors who won a landmark £200 million payout from Royal Bank of Scotland last summer.
Eight months after the settlement was agreed, private shareholders have still not received a penny. Law firm Signature Litigation, which is handling the case, blames the company formed to bring the claim – the RBS Shareholders Action Group – and its co-founder Gerard Walsh, who it described as a ‘proven fraudster.’
Norman Lamb, vice chairman of the All Party Parliamentary Group on Fair Business Banking, told The Mail on Sunday he would be asking Parliament’s Treasury Select Committee to investigate the fiasco. He said: ‘Faced with these very serious allegations it’s clearly important they are thoroughly investigated.’
Lib Dem leader Vince Cable called for shareholders to be ‘ recompensed immediately’.
The situation has prompted con- cerns about a separate company, the RBS GRG Business Action Group – set up more recently on behalf of small firms.
Irish businessman Walsh is a volunteer adviser to the GRG group. The latter said it is unrelated to the action group for shareholders.
In 1997, a judge in the High Court of Ireland ruled that Mr Walsh was ‘guilty of fraudulent misrepresentation’ by posing as a Lamborghini dealer. Separately, in 2014, t he Jersey Royal Court described him as a ‘fraudster’.
Sources close to Mr Walsh say he denies wrongdoing and add that he was neither a witness nor defendant in the Jersey case and was unable to contest the judgment.
The Mail on Sunday has learned that a criminal complaint has been made against the RBS Shareholders Action Group.The grievance was lodged with Action Fraud, part of the City of London Police, by one of the small investors.
Lawyers for the action group said it was unaware of the criminal complaint or anything to justify it.
Signature Litigation has a number of concerns about the action group. These include questions about a contract to pay £ 20 million to a company called Evalusafety.
The shareholder action group blames Signature Litigation for delays in making payouts to investors. It has lodged a complaint about Signature with the Solicitors Regulation Authority. The SRA said: ‘We are aware that a complaint has been made and will assess it before deciding on any next steps.’
A spokesman for Signature Litigation said: ‘ The Action Group company is not our client and has not shown us this complaint.
‘We view it as a bogus stunt from Mr Walsh and his associates who have long threatened to create negative publicity to support demands for some of our clients’ money to be paid to them.
‘He is a proven fraudster who has been the main force behind its activities and dealings with us.’
Manx Capital, the lead claimant, added: ‘We and Signature Litigation would welcome and fully cooperate with any public inquiry into how around £ 200 million of taxpayers’ money intended for claimants could potentially have ended up in the hands of an unregulated claims management company such as this, operated by someone like Mr Walsh.’