Veridicus

How Alper Deniz and Bedford Row Capital Scammed the UK Government 

Thurrock Borough Council was once a beacon of ambition, determined to lead the charge into a future powered by green energy and smart investments. At the heart of this vision was the financial director, a man known for his bold decisions and unwavering confidence. When Bedford Row Capital, a financial advisory firm with a prestigious reputation, presented the financial director with an opportunity to invest in an alternative lender, it seemed like the perfect alignment of ethics and profit.

Bedford Row Capital, led by Chairman Stuart Alan Gordon and CEO Scott Levy, had a reputation for innovative and responsible investing. Their persuasive presentations and impeccable credentials made them hard to resist. Their lawyer, Alper Deniz from Keystone Law Firm, added another layer of credibility, ensuring that everything looked above board. So, when they pitched the idea of investing £94 million in Just Loans Group, a special purpose vehicle (SPV) created by Bedford Row Capital, the financial director didn’t hesitate.

The promise was tantalizing: high returns, a boost to the council’s financial standing, and the chance to secure a legacy of financial innovation. The 2018 report from Bedford Row Capital painted a rosy picture, with projections that seemed too good to pass up. Despite some murmurings of concern from a few cautious voices within the council, the financial director pushed forward, convinced that this was the right path.

However, Thurrock’s financial troubles did not end there. The council had also invested a massive £655 million in bonds issued by companies owned by businessman Liam Kavanagh, specifically in a portfolio of 53 solar farms operated by Toucan Energy Holdings 1. Unfortunately, this investment also went into administration in November 2022, leading to substantial financial repercussions for the council. The sale of these solar farms was expected to result in a loss of approximately £200 million to taxpayers, as the selling price was around £700 million, which was less than the total amount owed to the council.

By late 2022, the financial position of Thurrock Borough Council had deteriorated rapidly. What was once a hopeful investment strategy had turned into a financial quagmire, with the council facing a staggering £500 million deficit, previously thought to be the largest in local government history. The town was in turmoil, and the financial director’s legacy was crumbling before his eyes. The community, once supportive, now turned against the council as the media exposed the full extent of the financial mismanagement.

As the dust settled, the council knew it had to take action. On August 7, 2024, they filed a lawsuit against Bedford Row Capital, accusing the firm of providing misleading and fraudulent investment advice. The council’s allegations focused on the 2018 report, which had convinced them to pour £94 million into what was ultimately a high-risk and disastrous investment in Just Loans Group. The financial collapse of the lender had exposed Bedford Row Capital’s misconduct, but as it turned out, this was just the tip of the iceberg.

The connection between Bedford Row Capital and Thurrock Borough Council lay in this legal dispute, where Thurrock alleged that the 2018 report prepared by Bedford Row Capital Advisers PLC had misled them into investing in high-risk bonds. The lawsuit claimed that this advice had significantly contributed to the council’s current financial crisis.

Had it only been the investment in Just Loans Group that blew up, Bedford Row Capital might have escaped unscathed. But the cumulative losses, including the £655 million invested in the solar farms, painted a much grimmer picture. The scale of the disaster was too great to ignore, and the authorities began to dig deeper into Bedford Row’s operations.

As the investigation unfolded, more troubling details emerged. Bedford Row Capital had been playing a dangerous game for years, and the collapse of Thurrock’s investment was merely one piece of a much larger puzzle. In response to the mounting legal pressures and financial difficulties, Bedford Row Capital filed for voluntary liquidation on June 10, 2024, with Stuart Alan Gordon appointed as the liquidator.

This move raised serious concerns. The liquidation, classified as a “creditors voluntary winding-up,” was designed to settle the company’s debts and distribute its remaining assets. But with Gordon, the same person behind the questionable dealings, overseeing the process, many feared it was a strategic move to control the narrative and protect himself and his associates.

Stuart Alan Gordon’s Role as Liquidator:

  – Stuart Alan Gordon, the Chairman of Bedford Row Capital, appointed himself as the liquidator during the voluntary liquidation process in June 2024.

  – His role as the liquidator gave him control over the entire liquidation process, including managing the company’s remaining assets and settling debts.

  – The decision to appoint himself as the liquidator was made under the “creditors voluntary winding-up” classification, which suggests that the liquidation was initiated due to financial difficulties and agreed upon by the company’s members and creditors.

How This Benefits Scott Levy ,Stuart Gordon and Bedford Row Capital:

  –  Control Over Asset Distribution:  As the liquidator, Stuart Gordon could influence how the company’s assets were distributed. He could prioritize the settlement of debts in a way that benefits himself or his close associates, potentially diverting funds before creditors are paid.

  –  Obfuscation of Evidence:  Gordon could control the flow of information during the liquidation process, potentially concealing or altering documents that could incriminate him or expose the full extent of the fraudulent activities.

  –  Minimization of Legal Exposure:  By overseeing the liquidation, Gordon could manage the process to minimize legal risks for himself and Bedford Row Capital. This might include delaying investigations, complicating legal proceedings, or strategically managing settlements to reduce liability.

  –  Protection from Further Scrutiny:  The voluntary liquidation, orchestrated by Gordon, might be used as a strategic move to shield the company and its key players from further regulatory scrutiny. By controlling the liquidation, Gordon could limit the amount of damaging information that becomes public.

  –  Continuation of Operations:  By managing the liquidation, Gordon could potentially safeguard certain assets or operations that could be repurposed or transferred to new ventures, such as the planned XTCC scam, thereby continuing his activities with minimal disruption.

  –  Historical Precedent:  Gordon and his associates had a history of structuring transactions in a way that protected them from legal repercussions. This liquidation followed the same pattern, ensuring that they remained insulated from full accountability for their actions in previous scams.

Despite the ongoing investigations, Alper Deniz, ever the cunning lawyer, played innocent. He continued his work at Keystone Law Firm as if nothing had happened, maintaining a façade of respectability and professionalism. He distanced himself from the scandal, portraying himself as merely a legal advisor who had no involvement in the decisions made by Bedford Row Capital. Even as the investigation closed in on his former associates, Deniz remained untouched, thanks to the complex web of legal protections he had crafted.

It soon became clear that there was little the regulators could do. Scott Levy and Alper Deniz had meticulously shielded the transactions, as they had done countless times before. The layers of legal and financial maneuvering ensured that none of them would face prosecution. The scandal at Thurrock was just the latest in a long line of schemes, each one carefully constructed to keep those at the top safe from legal repercussions.

This wasn’t the first time they had outmaneuvered the law. For years, Bedford Row Capital had been involved in hundreds of transactions, each one structured to protect its key players from accountability. The authorities were left frustrated, knowing that justice would likely never be served in full. Thurrock Borough Council, left to pick up the pieces, could do little but watch as the masterminds behind their financial ruin continued to evade the consequences of their actions.

Thurrock Borough Council was left to grapple with the aftermath of a financial catastrophe that had shaken the town to its core. The financial director, once a celebrated leader, resigned in disgrace, his ambitions dashed by the very people he had trusted to guide the town to prosperity.

In the end, the story of Thurrock became a cautionary tale, not just about the risks of aggressive investments, but about the dangers of placing too much trust in those who promise the world. Bedford Row Capital’s fall from grace served as a stark reminder that in the world of finance, what seems too good to be true often is. And for the people of Thurrock, the lessons learned came at a price they would never forget.