Robert Tchenguiz, the UK-based entrepreneur and one of the well-known property investors, has lost a court fight against CMC Spreadbet Plc. According to the official details of the case, the company sued Tchenguiz after he failed to pay his debt.
David Elvin QC, sitting as a deputy High Court judge, ruled in favor of CMC and ordered the British property tycoon to pay £1.31 million to the company. The court highlighted that Tchenguiz was ‘lawfully’ categorized as a professional client.
In an official statement released by Tchenguiz, the British entrepreneur said that he is planning to appeal against the decision.
“In my judgment, the Defendant was lawfully categorized as a professional client, and CMC did not fail to comply with the duty in COBS to give appropriate warnings with regard to the loss of protections and rights which he would have enjoyed as a retail client but not as a professional client. Further, for the reasons I have given, I reject the Defendant's contentions that in closing out his account CMC breached the Braganza duty or failed to comply with COBS 2.1.1R and the duty to act in the best interests of its client,” Judge David Elvin said in the ruling on Friday.
Background
The debt arose after the coronavirus-led market plunge caused a major dip in the shares of FirstGroup Plc. In 2019, Tchenguiz had a decent stake in FirstGroup. By March 2020, he increased his exposure in FirstGroup through a series of positions.
"It follows that the claim succeeds, the Defendant is indebted to CMC in the sum of £1.31 million together with interest due," Elvin added.
