Spread bet firm’s ex-chiefs may face litigation

The former directors of Worldspreads could face litigation as administrators try to recover creditors’ money from the spread betting firm.

Worldspreads was founded in Ireland in 2000 and listed on London’s AIM market in 2007.

Past directors include Conor Foley, who was chief executive of the company until he resigned on Mar 14, and finance director Niall O’Kelly, who resigned in February of this year.

Neither Mr Foley nor Mr O’Kelly have been accused of any wrong-doing.

The Financial Times reported that special administrators of the company — Jane Moriarty and Samantha Bewick of KPMG — confirmed they have started compiling evidence after being given the go-ahead by a committee of creditors.

“With the agreement of the creditors’ committee, we have a forensic team collating evidence from a vast swath of data extracted from Worldspreads,” Ms Moriarty said.

Once this evidence has been compiled and reviewed, the company’s administrators will then consider whether it has a case to recoup creditors’ money through litigation.

KPMG indicated in May it would look to pursue several high-stakes’ clients of the failed spread betting group for £2.5m (€3.1m) of losses incurred through losing bets.

It is now extending its sights to unnamed former directors and advisers of Worldspreads.