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…