A couple accused of receiving approximately £24 million from London Capital & Finance (LCF) and using it to finance an opulent lifestyle, encompassing luxury travel, jewelry, and membership at a prestigious Mayfair club, have reached a settlement with administrators overseeing the collapsed UK investment firm.
Simon and Helen Hume-Kendall had faced allegations in High Court proceedings regarding their involvement in what was termed a “Ponzi scheme,” which siphoned funds from 11,600 investors, marking one of the nation’s significant retail savings scandals in recent times.
Simon Hume-Kendall chaired London Oil & Gas, the primary recipient of funds lent by LCF before its collapse in 2019.
The terms of the settlement were not disclosed. However, legal action against other defendants, including LCF’s former chief executive Michael “Andy” Thomson, is ongoing, with proceedings slated to resume next week.
LCF amassed around £237 million from investors, promising returns of up to 8% through minibonds. Its collapse prompted criminal and regulatory probes, along with an investigation into the Financial Conduct Authority’s oversight of the firm.
The legal team representing the Hume-Kendalls argued that Simon Hume-Kendall had not served as a director of LCF during the period when the alleged Ponzi scheme was purportedly orchestrated. They further asserted that Helen Hume-Kendall faced no specific accusations of wrongdoing and criticized the administrators’ case against her as lacking substance.
While acknowledging LCF’s collapse as a tragedy, the couple’s legal representatives contended that the litigation was not the appropriate means to settle the affairs of LCF and London Oil & Gas.
The administrators of the firm, represented by Mishcon de Reya, claimed in written submissions that the couple had received at least £23.9 million from LCF, with substantial expenditures on luxury travel, fine dining, and a £ 250,000-lifetime membership at Annabel’s club, alongside political donations and property acquisitions by Simon Hume-Kendall.
Thomson’s legal team asserted his innocence, denying all claims against him. They argued that LCF had conducted legitimate business operations, involving fundraising through bond issuance and lending on commercial terms, without engaging in illicit activities.
