Home Economy Indian-born trader sets precedent by winning 20mn pound compensation

Indian-born trader sets precedent by winning 20mn pound compensation

By IANS,

London : Rajesh Gill, an Indian-origin trader regarded as among the best in the City, has won 20 million pounds in damages after being defrauded by one of the world’s largest brokerages.

The Financial Times said his victory over MF Global at the London High Court Wednesday followed “a landmark ruling likely to reverberate through the industry.”

Gill, a prolific trader, was locked in litigation with MF Global for seven years after one of its senior brokers defrauded him by lying to him about his earnings.

Matthew Bomford was accused of fooling Gill into thinking he was making millions when he was really suffering huge losses, which led to Gill unwittingly wiping his account out.

MF Global received 2.5 million pounds in commission directly from Gill’s trades and Bomford personally pocketed more than 500,000 pounds in bonuses.

“I feel both elated and hugely relieved it is over,” Gill said.

“My case is testimony to the fact that our courts do allow David to take on Goliath in order to establish the truth.”

The FT said the judgment has “far-reaching implications for other fraud cases, owing to Mr Justice Flaux’s decision to compensate Mr Gill for profits he would have made had he received accurate information about his account.”

MF Global said it would appeal the level of damages.