London Capital & Finance was a Ponzi scheme, court is told

A collapsed investment company was a Ponzi scheme that defrauded nearly £240 million from about 12,000 mostly elderly investors, the High Court has been told.

Michael Thomson, the former chief executive of the now-defunct London Capital & Finance, is alleged to have squandered their funds on racehorses, luxury watches and shotguns.

The opening of the civil fraud claim case in London also featured a dramatic walkout by the barrister representing Thomson, who told the judge that the defendant had no funds to pay his fees.

It was claimed at the hearing that documents showed that London Capital & Finance’s sales team was in a near-frenzy of excitement at the prospect of convincing one victim to invest.

Paul Careless, the former policeman who ran Surge, a