John Deuss wins £280m High Court fraud case
A significant victory for a Bermudian-based, Dutch-born billionaire tycoon has come in a substantial and high-profile fraud case before the English High Court.
Lawyers successfully defended John Deuss against allegations of fraud, brought by liquidator Stephen Hunt and Transworld Payment Solutions Ltd UK (in liquidation). The total value of the claims brought exceeded £280 million (about $378 million).
The claims related to events which took place over two decades ago, between 2003 and 2006, in the context of missing trader intra-community fraud in the British telecoms and mobile goods sectors.
Mr Hunt alleged that Mr Deuss had dishonestly assisted 19 companies engaged in such fraud by providing banking services to them through his bank, First Curaçao International Bank NV, and its Transworld Payment Solutions marketing arm.
A spokesman for Mr Deuss said a team of Quinn Emanuel lawyers — working with instructed counsel — developed and executed a defence strategy that meticulously unpicked the structure and substance of the claims.
The statement said: “The result was a comprehensive judgment by Mr Justice Leech in which he dismissed the claimants’ claims in their entirety, finding in Mr Deuss’s favour on every issue.
“The court’s decision not only vindicated Mr Deuss in respect of the historical allegations, but also made critical findings in relation to the conduct of Mr Hunt and his firm of insolvency practitioners, Griffins, in restoring TWPS to the Register of Companies so that it could be used as a vehicle to bring claims for their benefit.”
Mr Justice Leech held that HM Revenue & Customs had valid value-added tax claims against 11 missing trader companies and that the Curaçao bank assisted the companies’ directors to commit breaches of fiduciary duty that caused those companies to incur tax liabilities.
But he dismissed all allegations of dishonesty advanced against Mr Deuss, and found that he did not: know or suspect that missing trader fraud was prevalent; turn a blind eye to it; or deliberately choose not to investigate whether T&C customers of the Curaçao bank were engaged in such fraud.
Mr Justice Leech wrote: “I dismiss the claim for breach of fiduciary duty against Mr Deuss on the basis that he was not a de facto or shadow director of TWPS and did not owe fiduciary duties to the company. I also dismiss the claim on the basis that I have dismissed the allegations of dishonesty against him.”
• For more on Justice Thomas Leech’s ruling, see Related Media
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