Key facts
- Barclays faces potential liability of up to £37.8 million in claims linked to a collapsed investment scheme.
- The scheme, operated by Liverpool-based Denaro, defrauded hundreds of retail investors.
- Liquidators allege investor funds were moved through a Barclays account into a separate partnership account, from which founders took substantial sums.
- Barclays' relationship manager, Andrew Wileman, is accused of approving tens of millions in transfers without raising concerns.
- The scheme, which promised a 3% monthly return, collapsed with over £90 million in creditor claims.
- The High Court allowed amended claims for dishonest assistance and breach of Quincecare duty against Barclays to proceed.
Barclays is set to face a trial over its alleged role in a £90 million Ponzi scheme after a judge refused to dismiss claims against the bank. Liquidators of Denaro (UK) Limited, the company at the heart of the alleged fraud, are pursuing Barclays for dishonest assistance and breach of the Quincecare duty.
The scheme, which operated from 2013 until its collapse, defrauded hundreds of retail investors by promising a 3% monthly return on loans. According to court documents, founders with no financial background persuaded local people to invest thousands of pounds.
Liquidators allege that investor funds were channeled through a Barclays company account into a separate partnership account, also held at Barclays. From this second account, the founders allegedly took "very substantial sums for themselves." Some funds were reinvested into other speculative vehicles, some of which were themselves Ponzi schemes, while the remainder was used to pay existing investors, a structure sustained by new investor recruitment.
Lawyers for the liquidators argued that the Ponzi scheme could not have operated without Barclays' banking facilities. They accused Barclays' relationship manager, Andrew Wileman, of "dishonestly assisting the directors in their alleged breaches of fiduciary duty" by approving tens of millions of pounds in transfers without raising concerns. Wileman reportedly told colleagues that the founders were "very transparent" and described Denaro as a "members' club" involved in "99 per cent FX speculation."
Barclays sought to have the case dismissed, but a judge ruled that the matter must proceed to trial. The scheme stopped accepting new investors in 2019 and was ordered to wind down last year, leaving hundreds of creditors out of pocket. At its peak, the scheme held assets exceeding £41 million.
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