Rajesh Gill, an independent derivatives trader based in London, has won $20m of damages from MF Global, the futures and options brokerage. The English High Court ruled in Gill’s favour that an employee of MF Global had deliberately misled him as to the state of his trading account.
MF Global will appeal.
The case centred on allegations that MF Global account manager Matthew Bomford had fraudulently concealed Gill’s losses from trading large volumes of contracts for difference between June 2001 and March 2002 by insisting to his client that he was “making money hand-over-fist”.
Gill claimed Bomford assured him he had £9.27m in his account as late as October 2001, when the balance was less than £3m.