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Fund firm wins fraud case against former CEO

Fund firm wins fraud case against former CEO

Fund firm FM Capital Partners (FMCP) has won a four year court battle against its former CEO, who has been accused of taking bribes and committing fraud.

Frederic Marino was accused by FMCP of swindling the company out of £18 million by conspiring with Julius Baer banker Yoshiki Ohmura to divert funds to offshore accounts.

In a judgement handed down on Wednesday at the Commercial Court by Justice Sara Cockerill Marino was found liable in ‘breach of fiduciary duty, dishonest assistance and bribery’ while Ohmura was found liable in 'dishonest assistance and bribery'.

At the time of the allegations, during colonel Gaddafi’s Libyan regime in 2009, FMCP, a firm founded by Marino, was managing the Libyan government’s £441 million sovereign wealth fund, Libya Africa Investment Portfolio (LAP).

The court found that Marino and Ohmura had used their positions to gain commissions on long-term investments and shorter structured trades and then failed to disclose their actions to the company that Marino founded, effectively depriving the fund of the money.

FMCP’s lawyers contended that there was ‘no sensible commercial rationale’ behind the structured product trades and that their corruption ‘was motivated by and resulted in their personal enrichment on a grand scale.’

After discovering the wrongdoing in 2014, FMCP dismissed Marino for gross misconduct and began its legal challenge.

It is unclear how much FMCP will be able to recover from Marino and Ohmura, but the company has claimed equitable compensation from both. 

Further submissions will be heard at a later hearing in July. 

 

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