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Court of Appeal rules trader must compensate for professional negligence

Published on 6 May 2010 under category: legal

The Court of Appeal has ruled that a broker must compensate his client after repeatedly lying to him over the success of his trades.

In a landmark ruling, the court concluded that Matthew Bomford must pay self-taught trader Rakesh Gill £20 million after covering up the fact that his account was losing money due to poor decisions.

Despite starting off with a £10 million fund, Mr Bomford lost all of his trader client's money, with the Court of Appeal's ruling based on the profits Mr Gill is anticipated to have made had it not been for the professional negligence and repeated lies.

Speaking after the ruling, Mr Gill noted that even during the court case, Mr Bomford's brokerage firm continued to "accept the consequence of fraud".

"It seems they're just desperately prolonging the inevitable, at increasing expense to their shareholders. It's a misguided and costly strategy," he concluded.

The ruling comes in the same week that the charity Integrated Health, which was set up by Price Charles, has been closed as the result of an ongoing investigation into allegations of fraud.

If you require advice on Professional Negligence please call us on +44 (0)20 7831 0101 and ask for Peter Mellett.