It was announced on 21 July 2021 that the Financial Conduct Authority (FCA) obtained a conditional agreement with Park First Limited (PFL) and its senior management seeking compensation for approximately 4,500 investors in the failed Park First Scheme.
Conditional Agreement | Rosenblatt’s Financial Crime Team
On 16 October 2019, the FCA brought court proceedings against several companies connected to the Park First Scheme and their senior management, the chief executive Toby Scott Whittaker and director John Slater. Four of the companies involved with the Park First Scheme entered administration in July 2019, namely, Park First Freeholds Limited; Help Me Park Gatwick Limited; Park First Glasgow Rentals Limited and Park First Gatwick Rentals Limited, all of which were owned by Mr Whittaker.
The conditional agreement secured by the FCA should see a further £25m worth of compensation made available to investors in addition to the £33m the FCA have already secured from the proceeds of sale of the car park at Luton airport. This agreement however, is conditional on PFL investors approving the Company Voluntary Arrangements in respect of the connected companies. If these agreements are approved, the defendants will consent to orders that they breached s.19 Financial Services and Markets Act 2000 by operating a collective investment scheme without FCA authorisation. Alternatively, if the investors do not approve the conditional agreement the FCA’s proceedings against the defendants will continue. The Trial on this matter is presently fixed for a hearing in February 2022.
Mr Whittaker will need to realise a significant amount of his assets to pay the £25m which is due to be paid in instalments on the sale of the assets.
Executive Director of Enforcement and Market Oversight at the FCA, Mark Steward noted, the “agreement, if approved, represents a better outcome in the proceedings for investors than could have achieved through continued legal action, given the financial position of the parties. It also gives investors the final say on the merits of the conditional agreement.”
Our Financial Crime team will continue to monitor this case and provide further updates as they arise.
Rosenblatt can help
Rosenblatt has a wealth of experience in financial crime and is uniquely placed to support clients’ that are the subject of an FCA investigation and prosecution having defended one of the largest prosecutions brought by the Financial Conduct Authority.
https://www.rosenblatt-law.co.uk/services/financial-crime/#financial-crime
(Source: FCA – FCA secures conditional resolution of proceedings against Park First and its senior management)
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