A £120 million investment fraud case involving hundreds of UK pensioners has collapsed following the abrupt resignation of the presiding judge, leaving victims fearing they will not see justice. The trial, which focused on allegations that investment firms Friends Provident International (FPI) and Utmost International ignored a fraudulent scheme, was set to deliver its judgment.
James Corbett KC, the judge, cited ill health for his resignation, despite repeatedly stating the judgment was imminent. Claimants have called for the Isle of Man to fund a retrial, with 17 of the victims having died since the court hearing concluded in 2024. Many lost their life savings through supposedly low-risk funds promoted by FPI and Utmost.
The class action was initiated in 2023, two years after solicitor Timothy Schools was sentenced to 14 years in prison for money laundering and fraud. Schools' firm, Axiom, based in the Cayman Islands, was one of the entities promoted by FPI and Utmost, promising high returns. Investigations revealed that Schools had used investor funds to finance a lavish lifestyle, including the purchase of a £5 million estate.
FPI and Utmost, formerly operating under various names including Skandia and Old Mutual International, maintain they were not obligated to vet the funds promoted through their platforms. The collapse of this case could have significant repercussions for the Isle of Man's life insurance sector, which manages £88 billion in assets, with other similar claims pending judgment.
Efforts to obtain comment from Mr. Corbett and Utmost were unsuccessful. Utmost continues to deny the claims made against it, and FPI has expressed confidence that the claims will ultimately be dismissed. The Isle of Man authorities have confirmed that a new judge has been appointed and the case is scheduled for a September retrial, but have not clarified who will bear the costs of the new proceedings.