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Founder of Langbar accused over fraud
The founder of scandal-plagued investment company Langbar International was accused in a High Court civil action yesterday of complicity in a multi-million-pound fraud on investors.
Langbar, under its new chairman David Buchler, is suing Mariusz Rybak and other defendants, including chief financial officer Jean-Pierre Regli and the firm's main financial backer Abraham Arad Hochman, alleging deceit and conspiracy to defraud.
The company – formerly known as Crown Corporation – claims that Mr Rybak, a Polish-Canadian businessman based in Monaco who quit as chief executive in 2005, was involved in or knew about the falsification of the company's stated assets.
The company's counsel, Ali Malek QC, told Mr Justice Blackburne in London: "The assets were fictitious. Cash had not been deposited."
Langbar, which was listed on the Alternative Investments Market (AIM), says it is the victim of a fraud which came to light when 365m was found to be missing from its accounts two years ago at a time when it was based in Yorkshire.
It was the biggest fraud ever perpetrated on the AIM, Mr Malek said. In a hearing set to last at least five weeks, Mr Rybak will vehemently contest the accusations and has stated he is confident he will clear his name.
The company's initial claim against Mr Rybak is for around 29m, relating to personal gains made from allegedly unauthorised Langbar share sales days before trading in the shares was suspended over fears for the whereabouts of company funds.
Worldwide freezing orders have been obtained over the personal assets of Mr Rybak, Mr Regli and Mr Hochman.
The Serious Fraud Office has stated that its investigations into the company's affairs are still live. Based on its reported assets, Crown was "far and away the largest investment fund on the AIM", Mr Malek said.
"The case is that Mr Rybak acted dishonestly in that he knew that the certificates of deposit and the other financial instruments provided were fraudulent or worthless and that the company was not a genuine and honest enterprise," he told the judge.
It was unclear whether Crown was intended as a fraudulent vehicle from the outset or whether it was turned to a fraudulent purpose when the opportunity arose.
The hearing continues.
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Saturday 11 February 2012
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