Group Seven Ltd & Anor v Allied Investment Corporation Ltd & Ors
2014
CHANCERY DIVISION
United Kingdom
CORAM
- THE HONOURABLE MR JUSTICE PETER SMITH
Areas of Law
- Contract Law
- Fraud Law
2014
CHANCERY DIVISION
United Kingdom
CORAM
AI Generated Summary
This case involves a fraudulent investment scheme leading to the fraudulent transfer of €100m, orchestrated by multiple defendants including Mr. Sultana. The court nullified the Loan Agreement with the fraudulent defendants and held them liable for damages. It also addressed complex issues of contributory negligence and chain of causation under Maltese and English law.
This action is a claim by the Claimants arising out of a transfer of €100m by the First Claimant Group Seven Limited, formerly Allseas Group SA (“Allseas”) ultimately into a client account of a firm of solicitors Notable Services LLP (“Notable”) on 2 November 2011.
The Second Claimant (“Rheingold”) was joined into the action by an order I made on 10 March 2014 as Allseas had assigned all causes of action in respect of claims it might bring arising out of that transfer of funds. The assignment of the causes of action by Group Seven Limited to Rheingold by the Deed dated 16 November 2002 required a “a judicial act” under Maltese law in order for the assignment to be effective as against Mr Sultana until such time he contended in paras. (1A and 1B of his Re-Re-Re Amended Defence) that Group Seven Limited and not Reinhold was entitled to any relief. After I reserved judgment Mischon de Reya, Allseas solicitors wrote to me on the 9 June 2014 indicating that the Claimants had initiated the judicial process on 20 March 2014 and that the necessary steps to effect the assignment had now been completed. The Judicial Assignment dated 20 March 2014 confirms that the benefit of the claim against the Defendants has been properly transferred from Group Seven Limited to Rheingold. Mr Sultana was served with notice of that assignment on 19 May 2014 at the offices of his solicitors and by an order dated 15 May 2014, curators were appointed to receive such notice on behalf of AIC. Mr Rejniak has also been notified of the assignment on 20 March 2014. I am satisfied that all causes of action against AIC, Mr Rejniak and Mr Sultana have been validly assigned to Rheingold.
Allseas is a company incorporated in Malta on 20 April 2011. Its shareholders were Allseas (“Allseas Group”) as to 1,499 shares and 1 share to a Mr Heerema. Its Directors were Mr Heerema and a Mr Cornelis Kooger. Mr Heerema is the President and ultimate beneficial owner of Allseas Group. He is the ultimate beneficial owner of Rheingold as well.
There are a number of different entities and individuals that are relevant to this judgment and I attach a dramatis personae.
The First Defendant Allied (“AIC”) is a company which was registered in Malta on 4 October 2011. The Second Defendant (“Mr Rejniak”) is registered as its director and shareholder. He is a Polish national. In addition he was a director of Allseas from 18 July to 23 November 2011.
He has an address in Hong Kong and an address in Canada at which