An NRI trader has sued MF Global, formerly Man Financial, for fraud and has sought damages of up to 30 million pounds (Rs 215 crore).
An NRI trader has sued one of world's leading brokerage firm MF Global, formerly Man Financial, for fraud and has sought damages of up to 30 million pounds (Rs 215 crore).
A British citizen and a professional derivatives trader, Raj Gill has claimed to have been a successful trader before and after he traded through MF Global and that he lost a considerable amount only during his association with the firm.
Gill had been associated with the brokerage firm for about two years between June 2000 and February 2002, as per the papers filed in the High Court of Justice in London.
According to the claim, Gill's trading funds depleted from 4.5 million pounds to just 0.5 million pounds in this period.
MF Global, however, denied the allegations and termed the claims of damages by Raj Gill and his two investment firms (Parabola and Tangent) as "misconceived and exaggerated."
"It is unfortunate that this individual (Gill) has decided to use the Court's time and resources in an attempt to shield himself from the risks and transfer responsibilities that he knowingly undertook. We look forward to presenting the
facts of this case to the court," MF Global said in an emailed statement.
"Gill is unfortunately trying to use today's market backdrop, where serious cases of fraud have impacted many lives, to revise the history of his flawed trading strategies," MF Global added.
The Western world has been rocked by a number of investment frauds in the recent past, including over USD 60-billion alleged scam by Bernard Madoff and another multi- billion dollar fraud by Allen Stanford.
MF Global is maintaining that it only provided broking services and was not any advice to the NRI trader.
Gill has alleged that Matthew Bomford, a broker at Man Financial, was giving him false information regarding Gill's trading and account balances and thus affected his trading strategy.
The trial on the case began in the London High court on March 9 and is scheduled to continue for about five weeks.
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