The boss of a collapsed British shadow bank accused of £1.3bn fraud had been declared bankrupt shortly before he launched the company, it has emerged.
Paresh Raja, who led mortgage lender Market Financial Solutions (MFS), was made bankrupt over a £350,000 debt just a year before the business started.
He has been accused of “plundering” MFS to fund a lavish lifestyle that included buying “a vast number of cars” such as three Aston Martins, two Mercedes, six Ferraris and three Rolls-Royces.
The collapse of MFS this year triggered shock waves across the City. The lender, an intermediary which used borrowed bank money, had been bankrolled by leading financial institutions including Barclays.
There are now questions about why Mr…