Former MWB boss loses appeal in UK market deception case

LONDON (Reuters) - The former chief executive of defunct serviced office operator MWB Group has lost an appeal against a ruling by the London market regulator that he should compensate shareholders for his role in a complex case of deception.

Richard Balfour-Lynn, who led the holding company for majority owned businesses MWB Business Exchange, Malmaison/Hotel du Vin and London's Liberty department store, acted in concert with two executives - Jagtar Singh and Richard Aspland-Robinson - and others to gain control of MWB in 2009 and 2010.

The extent of their shareholding was deliberately concealed from the market and no mandatory offer was made, the Takeover Panel said. The company was liquidated in 2013.

Ten parties, including Balfour-Lynn, Singh and Aspland-Robinson, were what is known as "cold shouldered" for periods ranging from one year to five years, a censure that stops them working on any transaction regulated by the Takeover Code, in rulings in December 2023 and February 2024.

The three executives were also ordered to pay compensation.

The Takeover Appeal board on Tuesday said it had dismissed Balfour-Lynn's appeal against the compensation order, which totalled up to 33 million pounds ($42 million) plus interest.

Omar Faruqui, Director General of the Panel, said Tuesday's ruling concluded the most complex investigation in the Panel's 56-year history.

"Ten individuals have been cold-shouldered. They misled MWB Group shareholders and the market through a web of sham transactions and false trails stretching across many jurisdictions," he said.

($1 = 0.7786 pounds)

(Reporting by Paul Sandle; editing by David Evans)