MMI Stockbrokers is owed £549,007 by a group of offshore companies which the liquidator, Mr Tom Kavanagh, referred to as the "Swiss Five". An Italian banker based in Geneva and wanted in the US in relation to insider trading, is linked to the companies.
Mr Guiseppe Tome was found guilty of insider trading in the US in June 1986, and ordered to repay illegal profits which, with interest, totalled $5.8 million (€5.5 million). Because he did not attend the court, Mr Tome is considered a fugitive from the US.
Mr Tome is a wealthy investment banker who bought stock in St Joseph's Mineral Corp in 1981, after being given information that Seagram & Co was to make a takeover bid that would significantly boost the stock price.
The case received wide publicity at the time. Mr Tome got the information from a senior executive in Seagram.
Mr Kavanagh said he was told Mr Tome was the ultimate beneficiary of the five accounts, though when he contacted the Italian banker he denied this, said he was simply the financial adviser, and refused responsibility for the debts.
A number of other offshore companies owes funds to MMI. The fact that such companies were allowed to run up debts with the stockbroking firm is of note, as recovering money from such companies can be difficult.
The offshore debtors include Kolding Ltd, which is registered in Guernsey and owes £30,553. The beneficiaries are unknown and the company, which has no assets, is about to be struck off the Guernsey register.
Claycroft Ltd, which owes £91,495, is a nominee company acting on behalf of a trust called the Blue Trust, both registered in the Isle of Man. Key Marketing Ltd, Florida, US, owes £88,201.
