The liquidator of the investment manager of Axiom Legal Financing Fund is preparing to sue Cayman-based hedge fund firm DMS Offshore Investment Services, one of its officers, Dawn Cummings, and the architect of the scam, Tim Schools. Ironically, Tangerine Investment Management's liquidator wants a litigation funding firm to finance it.
British attorney Timothy Schools and entities he wholly or partly beneficially owned received £81 million of the £108 million that was swindled from investors in Cayman Islands-domiciled Axiom Legal Financing Fund, the Fund's Receivers have claimed in an amended complaint filed at the High Court in London.
The Cayman Islands-domiciled umbrella fund of which the fraudulent Axiom Legal Financing Fund was a sub-fund has been involved in at least two other frauds, OffshoreAlert can reveal. In the latest incident, investors in currency fund Capricorn FXG10 were allegedly swindled out of $26.6 million by British Virgin Islands-domiciled Global Tradewaves Ltd.
Insolvent Ashton Fox Solicitors owes failed Cayman Islands-domiciled Axiom Legal Financing Fund "approximately £60.8 m" but that is only an estimate "due to the paucity of the Company's accounting records", reported the law firm's joint administrator on May 15.
British attorney Steven Goodman, who is associated with insiders of the fraudulently-operated Axiom Legal Financing Fund, claims to be owed £25.7 million by the insolvent Fund's former investment manager.