A collapsed finance firm closely linked to disgraced Midland adviser Gary Hexley is at the centre of a new £300,000 High Court claim following a £1.3 million investment.
Linda Dear, a former client of liquidated Exclusive Asset Management, has filed a claim at the High Court against the company, for whom Hexley had worked as an adviser.
Lawyers claim the investment, made through a separate adviser, was “high risk” and arranged without her consent.
The claim alleges Exclusive invested around £1.3 million of Ms Dear’s money in January 2006 but ploughed an excessive slice into Hexley’s Greenfield International property development firm without her consent.
Last August the Financial Services Authority, which received complaints about Hexley, censured Exclusive Asset Management for its “inability to demonstrate the suitability of its advice and systems and control failings”.
The FSA said it would have fined the firm £60,000 but the business went into voluntary liquidation the previous May.
The Authority banned Hexley last June for giving customers unsuitable investment advice. Officials visited Exclusive offices following the complaints.
Tom Spender, FSA head of retail enforcement, said: “The fine we would have levied on Exclusive reflects the seriousness of the failings found at the firm.”
Last November Hexley was arrested along with another individual and interviewed by officers from the Financial Services Authority.
Investigations are still ongoing.
The arrests follow an investigation into Hexley’s activities following the collapse in 2010 of Sutton Coldfield-based Greenfield International.
The crash left a total of 237 creditors, including elderly West Midland investors, with total debts of £2,077,426.05.
Hexley was made bankrupt with liabilities of nearly £1 million and banned and censured following the firm’s demise.
Lawyers for Ms Dear would not discuss the new claim.
Hexley could not be contacted.