The case centres on entrepreneur and investor Nick Clarke’s claim that West One Loans acted in breach of contract by failing to obtain security on a Fulham property before inadvertently lending Clarke’s money to a fraudster. The fraud was finally uncovered by HM Land Registry, which spotted a signature did not match its previous records.
The fraudster, who secured a bridging loan for a higher amount of £570,000 from West One after falsely claiming to be Massimo Barbini, the registered owner of 88 Gowan Avenue in Fulham, has never been apprehended.
Scotland Yard confirmed no investigation had ever been launched to find the fraudster, as the case would be “followed up through other channels.”
Short-term lender and defendant, West One, denies all allegations, claiming that the agreement with the investor included an exclusion clause absolving them of liability in such circumstances.
After his introduction to West One, the investor Clarke argues the defendant owed him a ‘duty of care’ including obtaining valid security for the loan and the true identity and address of the borrower.
West One, which claims it took all reasonable and necessary steps to avoid the fraud, said: “Sadly, we cannot comment on this investor matter as it’s subject to on-going legal proceedings.”
However, Mark Abrahams, CEO of West One Loans, said: “Having said that, I would like to take this opportunity to highlight the robust, best practice measures West One Loans has in place to combat fraud.”
Mishcon de Reya, Nick Clarke’s legal firm, is seeking the return of the £235,000 cash, the interest it claimed was “contractually agreed” and court costs.
The case is set to be heard in the High Court on 6 July.
The Office of Fair Trading (OFT) explained it had no remit in this area.
“We licence providers of bridging loans and we would be interested in the contractual relationship between the lender and the consumer, but this is a B2B dispute,” it said.
