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PI firm Fabien collapses with debts of 700,000

PI broker Fabien Risk Serv- ices has gone into liquidation and is under investigation by the FSA.

The firm, whose client list included IFAs and an as yet unnamed adviser network, collapsed earlier this month with debts of over 700,000.

Begbies Traynor has been appointed as liquidator fol-lowing a meeting between creditors and shareholders on October 19.

Money Marketing understands that the investigation will address allegations against Fabien chairman Shane Garvey and other senior members of staff made by former managing director Stephen Allen, who reported them to the Serious Fraud Office.

Allen, who resigned from Fabien in September, claims that he was kept in the dark about the firm’s financial predicament and that the management figures given to him while he was at the company were “completely contradictory”.

The liquidator is also following up concerns surrounding the acquisition of Fabien’s clients and assets for 1,000 by Garvey’s new Romford-based company, Winchgate Investments.

Allen claims that all Fabien staff at its London and Bristol offices were contacted by telephone on pay day and advised that the company was closing down and they would receive no salary for the month.

He refutes claims made by Garvey at the creditors meeting that a helpline was set up for customers of Fabien.

Allen says: “My prime concern is the ongoing service needs of the policyholders.”

Begbies Traynor spokesman Dominic Czerwinke says: “It is too early to draw any conclusions but we will work hand in hand with the FSA and produce our report within the next six months.”

Garvey was unavailable for comment.

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