An NRI trader has won a case against MF Global as the London High Court has ordered the leading brokerage firm to pay 19.72 million pound in damages.
MF Global has been found to have systematically deceived and defrauded Rajesh Gill and the broker has to pay provisionally damages of 19.72 million pound, the ruling stated.
However, the final damages and costs (possibly on an indemnity basis) would be assessed at a further hearing on May 22, 2009.
Gill, a professional derivatives trader had filed apition against MF Global (formerly Man Financial) for fraud and sought damages of up to 30 million pound (Rs 215 crore).
The damages reflect Gill's losses plus compensation for loss of the profits he would have made had the broker not committed fraud, as well as interest.
Justice Flaux ruled that Gill's multi-million pound losses during his time trading with MF Global in 2001-02 were direct result of repeated deception committed by the firm's broker Matthew Bomford. "I feel both elated and hugely relieved it is over. Man's continued protection of a fraudster for over seven years is indefensible, deplorable and deeply unethical. Yet I would still urge individuals to stand firm and act in the face of deliberate and sustained corporate misconduct," Gill said