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FSA and FSCS rejected as Keydata witnesses as case drags on


The Upper Tribunal has rejected pleas from Keydata founder Stewart Ford to call regulatory staff as witnesses in his long running legal battle against a £75m fine.

Ford and fellow Keydata director Mark Owen are contesting regulatory bans for their role in the collapse of the investment firm. Owen also faces a fine of £4m.

In the latest development in the case, Ford sought to call eight witnesses to give evidence as part of his argument that it was regulatory intervention, rather than the directors’ misconduct, that caused the firm to fail.

Among the witnesses he wanted to summon included senior investigating officers from the then FSA Rebecca Irving and Lilian Small; Tim Harrop, a lawyer from Allen & Overy which advised Keydata on tax matters; and FSCS general counsel James Darbyshire.

Ford and Owen also wanted to call one of the Keydata administrators Daniel Schwarzmann, KPMG Luxembourg manager Eric Collard and Luxembourg regulator senior executive Christiane Campill.

In his ruling published on 7 April, Judge Berner refused all the above applications on the grounds that either the requested witnesses were not relevant or out of jurisdiction for the case.

The judge has allowed only one witness to be summoned, which is former Keydata compliance officer and chief operating officer Peter Johnson.

Between July 2005 and June 2009, over 37,000 investors bought Keydata products and invested a total of over £475m. The FSCS has paid out over £330m.

The case continues.



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FCA hits out at Keydata boss’s ‘fanciful’ legal fight

The FCA has described Keydata founder Stewart Ford’s £600m legal claim against the regulator for its role in the collapse of his investment company as “fanciful”. Yesterday Ford, along with former Keydata sales director Mark Owen and three Keydata related companies: – LAS Global Limited, LAS International Limited and Tandem Marketing Partners Sarl – began legal […]

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There are 2 comments at the moment, we would love to hear your opinion too.

  1. Well this will be another government cover up, they don’t want the regulator blamed. However those of us that remember, the FSA were right behind Keydata. I never used it, but at one point the FSA were almost recommending it. However the government and the judiciary are against them now.

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