So How Did Russell King Pull it Off?

(Posted on 17/04/11)

News broke that some of the country's more recognized names have been scammed by an until-now little known fraudster. Russell King, who's a convicted fraudster, was able to gain control of a whopping 49% hold of First London. His claims? Impressive - they included tales of his management of billions of dollars in the Bahraini family and once he gained the trust, he was able to gain that control without investing a single penny. Suddenly, First London PLC found itself going into administration with debts totaling £8.7m .

The case has been turned over to the Financial Services Authority. A spokesman for the Authority immediately released a presser that included, "In this case, the acquisition of control occurred without the FSA having been given the prior notice which the law requires it to be given. Had proper notice been serviced...(the agency) would have identified a number of concerns and pursued a series of leads into what was an extremely complex corporate structure". As for plans on what the FSA might decide to do, he declined to comment, citing confidentiality issues.

Among those who were scammed, Notts County, which was assured millions of pounds of investments would be made via the Middle East. Of course, that deal never cemented and as a result, a £7m deficit occurred. Due to the potential criminal implications, Nottingham police have joined the investigation.

While these are a few of the damaging results of King's hands, there are many more that he's believed to be a part of. But how was he able to pull it off? Is he a risk taker who thrived on the adrenaline rush of these huge deals? Was he determined to see just how far he could push the proverbial envelope? After all, he gained control over First London - no small feat and some would say, up until King's appearance, it would be impossible.

For now, First London's parent company, First London Group PLC is still in business and has opted to temper its own pressers, saying lawyers agreed failure to notify it was a "mistake". Time will tell just how big of a mistake it truly is.