Collapsed UK ‘Shadow Bank’ Boss Bet Up to £60K Per Spin at London Casinos

The founder of a collapsed British “shadow bank” accused of misappropriating £1.3 billion (US$1.7 billion) was reportedly a prolific high roller who bet up to £60,000 ($60,000) per roulette spin at London’s exclusive casinos. Paresh Raja, above, whose collapsed lending business is at the center of £1.3 billion fraud allegations, was reportedly a major Mayfair casino high roller. (Image: MFS) Paresh Raja’s mortgage lending company Market Financial Solutions (MFS) collapsed into administration in February amid allegations of massive financial irregularities. A source familiar with Raja’s gambling told The Telegraph he was a regular visitor to the upmarket Palm Beach Casino and Colony Club in Mayfair, one of London’s most affluent districts. Raja was reportedly permitted to access as much as £600,000 ($800,000) a day from his bank account to finance his casino play, according to The Telegraph. “He would play and play, drink and drink, and if he didn’t lose all his money at the Palm Beach, he would then get in a car and go around the corner to the Colony Club,” the source said. The newspaper does not claim that any money allegedly misappropriated from MFS was used to fund Raja’s gambling. £408M Payments Alleged The company’s creditors have alleged a shortfall of more than £1.3 billion ($1.7 billion), while administrators have accused Raja of orchestrating a scheme through which money was extracted from MFS and related companies. A separate lawsuit brought on behalf of creditors alleges Raja and his wife received more than £408 million ($545 million) from funds managed by MFS into personal bank accounts in the UK, Monaco, Singapore, and the United Arab Emirates, according to The Telegraph. Raja has also been accused of acquiring a fleet of luxury vehicles. The newspaper reported that these included six Ferraris, three Aston Martins, three Rolls-Royces, and two Mercedes. Raja and his wife deny wrongdoing and maintain there was no fraud or dishonesty. Rise and Fall MFS was a so-called shadow bank, a non-bank lender that borrowed money from banks and other financial institutions to fund property loans to its customers. The company had grown rapidly before its collapse, with its loan book reaching approximately £2.4 billion ($3.2 billion) by the end of 2024. Its creditors included some of the world’s biggest financial institutions and private capital groups. In March, courts in London and Dubai imposed a worldwide freezing order on Raja’s assets up to £1.3 billion. The order requires Raja to disclose assets worth more than £10,000 ($13,000) and prevents him from spending more than £5,000 ($6,700) per week without the consent of MFS administrators. The Financial Conduct Authority subsequently opened an enforcement investigation into MFS. Casino Debts Predate MFS Raja’s apparent appetite for gambling predates his emergence as a wealthy financier. The Times reported last month that he was declared bankrupt in March 2005 with debts of around £350,000 ($470,000), a small proportion of which were owed to casinos. His bankruptcy was discharged a year later, although he remained subject to bankruptcy restrictions until March 2009. MFS was incorporated in November 2006 by Pratibha Dewan, who later became Raja’s wife. Raja, who has described himself as the company’s founder, did not formally become a director until 2017. Raja has characterized the allegations against him as a “personal vilification campaign.” The post Collapsed UK ‘Shadow Bank’ Boss Bet Up to £60K Per Spin at London Casinos appeared first on Casino.org.