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Categories:Offshore

New York court names duo in fraud summons

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Two offshore financial advisers have been named in a New York Supreme Court summons accused of a multi-million-pound fraud.

According to court documents released last month, Martin Kinsey and Stephen White allegedly put client money into funds run by a “sham” company called Montague Morgan Slade Ltd while advisers at Dubaibased ExPat Solutions.

The summons says the acc-used “worked in concert, used false and misleading statements” to solicit investments in MMS but then money was “transferred among defendants” through a firm called Mo-Mo Mama Direct Access Trading LLC.

It says: “The key overarching fact that must be understood in order to understand the MMS enterprise is that there is no MMS beyond the Wall Street virtual office… it is all sham.”

The three funds in question are the MMS absolute performance fund, the MMS diversified fund and the MMS 1095 fund. Kinsey and White all-egedly put £3.65m from at least 20 investors into MMS funds, with £670,000 from four other investors also being invested through ExPat Solutions.

The court documents suggest White and ExPat Solutions both received money from MMS’s bank account totalling at least £200,000.

The documents say MMS was set up in 2000 under the laws of the Bahamas by Anthony Heald. Heald and MMS co-owners Michael Brown and Gordon Spedding are also named in the summons.

The summons was sent on April 18 and the defendants have 30 days to respond. The 20 plaintiffs come from countries including the UK, India and Australia.

Kinsey says: “I do not believe anything fraudulent is happening. In fact, I had a significant amount of my family’s money invested in one of the funds.”

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