SPYMASTER FALLS FOR CONMAN

CITY SPY
16 May 2011
The Evening Standard

OH NO! SPYMASTER FALLS FOR CONMAN

Excerpt

WHAT is about Air Marshall Sir John Walker, ex-spymaster at the Defence Intelligence Service (DIS) and one of the City’s great and the good, and con artists? Last month, Sir John admitted to being duped by convicted fraudster, “trillion dollar conman” Russell King, who is so evasive he is known as Lord Voldemort (the Harry Potter character who cannot be named). First London investment bank sent its adviser Walker to check out King, and apparently found nothing awry in his schemes promising billions in Bahraini investment for the bank, a minerals bonanza in North Korea, and the takeover of Notts County Football Club (with Sven-Goran Eriksson at the helm). The Serious Fraud Office is now investigating this house of cards. Of King, Sir John now admits: “He was good at chat... he was a conman.”

THIS wasn’t the first time Walker had been led astray. In 2003, when he was on the board of private security company Inkerman, Sir John was “pleased to announce” the appointment of Kevin Halligen as CEO of an Inkerman subsidiary (according to Inkerman’s old press release). It was Halligen’s big break into the world of corporate spookery and the release spoke of Halligen’s role on MoD “special projects” (though his expertise was really in, erm, batteries). But doubts about him soon arose. After he left Inkerman, Halligen — by then parading as a full-blown ex-spy — bagged the half-a-million-pound contract to find Madeleine McCann (but allegedly spent most of his time in bars and strip clubs and buying mansions). Now he sits at Her Majesty’s leisure pending extradition to the US on £1.2 million fraud and money-laundering charges for a contract in which he promised to free two captive Trafigura staff in Ivory Coast (the appeal judgment is expected soon).

Continue Reading... Labels: 2011, Find Madeleine Fund, Fraud, Kevin Halligen, Madeleine McCann, MI5, Sir John Walker, Trafigura

Serious Fraud Office to probe football scam

Serious Fraud Office to probe football scam
18 April 2011
BBC One
BBC Panorama

The Serious Fraud Office is probing an elaborate scam that took in the former England football manager Sven-Goran Eriksson, the former spymaster Sir John Walker and the North Korean government, BBC Panorama has learned.

Investigators are also looking at how the same con man took control of almost half a London investment bank without paying a penny for the shares. First London PLC, whose advisers included Tim Yeo MP and Air Marshal Sir John Walker, subsequently went into administration last year with debts of £8.7m.

Panorama – The Trillion Dollar Con Man (Monday 18 April, BBC One 8.30pm) has discovered that Russell King, a convicted fraudster, obtained 49 per cent of First London's shares in 2008 by falsely claiming he was managing billions of dollars for the Bahraini royal family.

The case has recently been referred to the Serious Fraud Office by the Financial Services Authority (FSA), which was concerned about the unauthorised transfer of shares.

"In this case the acquisition of control occurred without the FSA having been given the prior notice which the law requires it to be given," an FSA spokesman told Panorama.

"Had it been given proper notice it would have been in a position to consider whether it should use its powers to object to and prohibit the change of control.

"The FSA subsequently identified a number of concerns and pursued a series of leads into what was an extremely complex corporate structure. It would be inappropriate for us to comment further at this time due to confidentiality issues."

Tonight's Panorama programme also shows how King used the name of the bank and its high-profile advisers to give credibility to his fraudulent deals.

They included an audacious attempt to obtain funding for a new company that claimed to have assets worth $2 trillion and the short-lived takeover of the Football League's oldest club.

In 2009, King was behind a controversial takeover of Notts County which promised to bring millions of pounds of investment from the Middle East.

The investment, which appeared to have been guaranteed by First London, never materialised and the club was left £7m in the red – but not before Sven-Goran Eriksson agreed to join County as director of football.

The coach's contract included a clause entitling him to 11 million Euros worth of shares in a little known company called Swiss Commodity Holding (SCH).

SCH, which had only been set up a few months earlier, claimed to have assets worth $2 trillion because it had obtained the exclusive rights to all of North Korea's gold, coal and iron ore.

King persuaded the former England manager to visit the rogue state as part of an SCH delegation and Mr Eriksson was present at a meeting with the North Korean leadership.

"I was in the palace and they were handing over to the North Korean government so-called shares," Eriksson tells Panorama.

"I asked them how much that was because at the same time we couldn't pay the milk bill at Notts County and what they told me was not millions, it was billions of dollars. They used my name. Of course they did. At the end it became a big, big mistake."

Panorama's investigation shows that King was secretly running SCH, which was considering a public listing.

Documents detailing the company's claims were prepared by First London PLC. The investment bank also sent Sir John Walker, a former head of defence intelligence, to check out King and his associates.

The Air Marshal tells the programme:

"What do I think of Russell King? Not a lot. He was good at chat, but that was his business. He was a con man. I was taken the same way Sven was taken. They just wanted names".

King had convinced First London he was managing billions of dollars of Bahraini cash after he introduced some of its bankers to senior members of the royal family.

But Fawaz Al Khalifa, President of the Bahraini Information Affairs Authority, says that King was lying about his royal connections:

"He might have met members of the family here or there, but we have no financial connection to him or his company."

King, who was jailed for insurance fraud in 1991, denies any involvement in the running of Notts County, SCH or First London PLC.

But Panorama has obtained dozens of emails and numerous testimonies showing he was secretly pulling the strings. At Notts County, King even referred to himself as Lord Voldemort, the character from the Harry Potter books who can never be named.

The club had been owned by a supporters' trust, but King persuaded the fans to sell it for just £1 after they met one of his supposedly wealthy benefactors in Bahrain.

Abid Hyat Khan was introduced as a Middle Eastern prince, but Panorama has discovered that he is actually on the run from British police.

The "fake sheikh" absconded from the UK in 2008, when he was due to stand trial for allegedly stealing almost £1m.

Despite being a wanted fraudster, Khan was approved by the Football League as a fit and proper person to run Notts County.

Former Football League chairman Lord Mawhinney denied the league had been negligent over the takeover:
 

"What the League did was rigorously apply the rules and regulations that existed at the time."

He said the Football League had tightened up its ownership rules as a result of the problems at Notts County.

In a separate inquiry, Nottingham police are now investigating the takeover to see if the football club was obtained by deception.

The police were called in by current Notts County chairman, Ray Trew. He is convinced that crimes have been committed at Meadow Lane:

"The inquiries are on-going and I am hopeful a prosecution will come out of this," he told Panorama.

First London's parent company, First London Group PLC, is still in business. In a statement, its lawyers said the failure to notify the FSA about the change in ownership was a mistake that had been rectified:

"This was simply an error and not done for any ulterior or questionable motive. As far as our client is aware the FSA were satisfied that the information provided was in compliance with all legal and regulatory requirements.

"Our client is unaware of any investigation by the FSA or SFO into its activities so far as they relate to or involve Russell King."

Video:
http://www.bbc.co.uk/programmes/b010p00r

Continue Reading... Labels: Sir John Walker

FIRST LONDON SECURITIES PLC / BELGRAVIA

9 June 2008
FIRST LONDON SECURITIES PLC AGREES TO ACQUIRE BELGRAVIA'S FINANCIAL SERVICES OPERATION

First London Securities plc ("First London" or "the Company"), the fast growing international merchant banking business, today announces that it has agreed to acquire the financial services operations and take over the asset management operations of Jersey based Belgravia Financial Services Group ("Belgravia").

Commenting on the transaction Guy Saxton, Chief Executive of First London said:

"First London has assembled an experienced team with an impressive track record in order to expand our asset management business. Belgravia has built an exceptional business and has an excellent range of funds which have consistently outperformed the market. Our team and network will look to broaden distribution of these products".

He added:

"This acquisition is immediately accretive to earnings and is synergistic to our investment banking and proprietary investing businesses, and allows us to leverage Belgravia's significant experience and global network."

Following the transaction members of Belgravia's investment management team will join First London's own asset management division, First London Asset Management Ltd ("FLAM"), ensuring continuity of management and client service. Subject to Jersey Financial Services approval, which is expected soon, it is expected that FLAM will be appointed as the manager of the funds on an on-going basis.

Simon Bailey, Chief Executive of Belgravia Financial Services Group commented:

"First London is following a disciplined strategy and is quickly achieving its vision of becoming an integrated merchant bank with global presence. This transaction allows Belgravia to concentrate on its other operations including private equity and wealth management enabling both organisations to benefit from shared knowledge and experience, as well as a wider network of contacts, greater geographic reach and a broader depth of services. As such it is very much in the interests of our clients, investors and employees."

Following completion of the transaction, the shareholders of Belgravia will own approximately 29% of the combined Company.

For further information please visit www.firstlondonsecurities.com,
www.belgravia.je or contact:
First London Securities plc Tel: 020 7451 2466
Guy Saxton
Tavistock Communications Tel: 020 7920 3150
John West
Axiom Capital Limited Tel: 020 8455 0011
David Sinclair

The Directors of First London Securities plc accept responsibility for this announcement.

Notes to Editors

Belgravia Financial Services Group is a Jersey based financial services and fund management company. It offers a range of investment funds to high net worth and institutional investors and has established itself as a leading provider of innovative products, which tend to focus on a `low-risk' investment strategy, but still generate top quartile performance.

Belgravia's Funds aim to provide solid and consistent total investment returns. Capital preservation and total return of (at least) net 8-10% are the norm. Investors get access to the enhanced benefit of offshore tax status and the impressive track record of the manager. Active management will reduce risk and add significant value.

The operations acquired comprise principally of the asset management of a number of CSX listed funds, currently managed by Belgravia Asset Management. These include:

Belgravia Property Funds (UK & Europe) Limited: Launched October 2004

The Fund provides solid and consistent total investment returns from investment into a range of commercial properties. The Fund has low risk profiles and invests in properties let to large corporate tenants, usually with a net worth of over $180 million, on fully repairing and insuring leases. The Fund concentrates on investment opportunities where there is good rental growth or leases have fixed rental uplifts incorporated.

Cumulative Performance since Launch (GB £ Share Class) 52.22%

Belgravia European Logistics Fund PC: Launched May 2007

The Fund provides professional, institutional and high net worth investors with a professionally managed means of participating in the European logistics property markets. The primary investment objective of the Fund is to achieve medium to long term capital growth from a diversified portfolio of property and property related development projects. The Fund is acquiring a diversified portfolio of logistic and warehousing property and property development projects situated within the Western, Central and Eastern European countries. Such investments predominantly include commercial properties in the retail warehouse, office, industrial warehousing and logistic sectors.

Cumulative Performance since Launch (GB £ Share Class) 22.51%

Belgravia Global Property Fund PC: Launched in March 2007

The Fund provides investors with a fund-of-funds investing in property funds managed or promoted by entities associated with (whether by joint venture or otherwise) Belgravia Financial Services Group Limited or its subsidiaries.

Cumulative Performance since Launch (GB £ Share Class) 17.22%

Belgravia European Income Fund Limited: Fund launched October 2005

The Fund provides solid and consistent total investment returns from the investment into a range of predominantly real estate assets in Europe. The Fund has low risk profiles and invests in properties let to large corporate tenants, usually with a net worth of over €50 million, ideally on triple net leases. The Fund concentrates on investment opportunities where good rental growth is expected or leases have fixed rental uplifts incorporated.

Cumulative Performance since Launch (GB £ Share Class)
Accumulation: 39.05%
Income: 23.15%

Belgravia Gold & Resources Fund LP
Fund is predominantly used as a $ hedge in portfolio construction.

First London

First London strategy is to create a global wealth management brand and international merchant bank by acquiring complementary profitable businesses, which offer a holistic range of value added services to clients.

The Board and Advisory Board comprises:

Guy Saxton, Chief Executive Officer
Formerly CEO of Angelbourse Limited, a private equity boutique specialising in early stage companies. He is a member of the Guild of International Bankers and on the Plus Markets Advisory Group.

Andrew Turner, Executive Director
Andrew has spent the last 9 years managing the merchant banking/asset management activities at Tech Capital Group, the last 3 years of which, he was CEO. Andrew has extensive experience developing core strategies for technology companies.

Robert Barker, Finance Director and Chief Financial Officer
A chartered Accountant with over 20 years experience, Robert has significant experience as CFO of a number of both private and publicly quoted companies

Theresa Dowling, Non-Executive Chairman
Ms. Dowling has 20 years experience at leading international investment banks including Morgan Stanley, S.G.Warburg and Merrill Lynch, where she worked on institutional sales. In addition, Theresa built two US offices for European investment banks for the purpose of marketing foreign equities to US institutions. Theresa holds Series 7, 63 and 24 registrations with the NASD. Theresa is the CEO of Bio-IB Inc.

Nicholas Chance,Non-Executive Director
Nicholas has a wealth of investment experience having joined Grieveson Grant and Co (now Dresdner Kleinwort Securities) in 1972 as an investment broker for the Foreign Division of the Government Securities Department. Since then Nicholas has held positions at Hargreaves Group PLC, a listed industrial conglomerate with 1500 employees and an annual turn-over of approximately £300 million and quoted investment company Third Mile Investment PLC. In September 1997, Nicholas was appointed Private Secretary to HRH Prince Michael of Kent GCVO, based at Kensington Palace, London. He was appointed Lieutenant of the Royal Victorian Order (LVO) by HM The Queen in the 2005 New Year's Honours.

Andrew Consentino, Non-Executive Director
Andrew has 25 years experience as a corporate lawyer and was previously a partner with various major firms including Piper Rudnick and Greenberg Trauig.

Advisory Board

Air Marshall Sir John Walker

Sir John is former Chief of Defence Intelligence and Deputy Chairman of the Joint Intelligence Committee at the MoD and, until recently, he was Special Adviser to the House of Commons Defence Committee. He is former MoD Director of Forward Policy (RAF) responsible for the size and shape of the RAF up to 30 years ahead, and he is currently member of the board of directors of several corporations. He is a regular commentator on national television, radio, and press and he has lectured on mine-warfare.

Dr Michael Dexter
Dr Michael Dexter was Director of the Wellcome Trust from 1998 to 2003, one of the largest biomedical research funding charities in the world. Whilst Chief Executive of the Wellcome Trust he was responsible for a considerable increase in financial support for the biomedical and physical sciences through a variety of initiatives. Since leaving that post he has taken up the following appointments: member of the North West Science Council; Chair of the board of trustees at the Centre of Life in Newcastle; and Non-Executive Chair of Stem Cell Holdings while he is also an international scientific adviser for Rothschild Asset Management.

The Hon. Barbara Thomas (Lady Judge)
The Hon. Barbara Thomas (Lady Judge) is chairman of the UK Atomic Energy Authority and of the Governing Body of the School of Oriental and African Studies. She became a director of the UK Atomic Energy Authority in 2002 and has been its Chairman since 2004. She is also Chairman of the School of Oriental and African Studies and Deputy Chairman of Friends Provident plc. In 1980 she was appointed by Jimmy Carter as the youngest ever Commissioner of the US Securities and Exchange Commission and was a founder of its international division. She is also Chairman of LIFE IC, an incubator for renewable technologies and she acts as Independent Director of Massey Energy Inc (USA).

Continue Reading... Labels: Sir John Walker