Property mogul Vincent Tchenguiz headed a trust that has recently settled a legal battle with Icelandic bank Kaupthing. The battle concerned losses that the bank sustained after its collapse 3 years ago.
Under the terms of the settlement, the Tchenguiz Family Trust is set to receive an “undisclosed sum” from Kaupthing administrators as recompense for the losses they incurred as a result of its crash.
The Icelandic bank became one of the first to go bust during the banking crash of October 2008, resulting in massive losses for Vincent Tchenguiz and his brother Robert, who had close ties with the bank.
The brothers losses’ come from property assets pledged to the bank before the crash which were eventually seized after the bank went under during the financial crisis.
Bank accused of over-reporting assets
The Tchenguiz Family Trust accused Kaupthing of over-reporting its financial position and inflating its assets report through questionable accounting.
The trust says that Vincent Tchenguiz would never have pledged property or assets to the bank if it had been honest with its financial reporting, and therefore have a claim to regain the money they lost.
This occurs as a trust linked to Robert Tchenguiz is involved in a separate suit with Kaupthing. This legal batter involves recovering his £330.7million from the busted Icelandic bank.
The Tchenguiz brothers have been under continuous investigation by the Serious Fraud Office. In March, they were arrested for the purpose of questioning about the Icelandic bank’s accounts activity in the months before its fall.
Vincent and Robert are both seeking judicial review for the SFO investigation. Four Tchenguiz Family Trust companies went into administration as a result of the SFO probe on Kaupthing.