Distressed small investors are demanding a probe into an action group set up to sue Royal Bank of Scotland after this newspaper revealed its links to a fraudster.
Dozens of people who signed up to the RBoS Shareholders Action Group have shared their concerns with The Mail on Sunday and several have asked the City of London Police’s Action Fraud department to investigate.
A Mail on Sunday investigation has found the action group – set up to sue RBS over shares sold in 2008 before their value crashed – was co-founded by Gerard Walsh, an Irish businessman who has been named as a fraudster by a Jersey court in a separate civil case.
Dozens of people who signed up to the RBoS Shareholders Action Group have shared their concerns with The Mail on Sunday
Investors who signed up to the action group won a £200 million settlement from RBS a year ago in a much-celebrated victory. But the majority has so far not been paid out and it has emerged that Walsh is trying to claim at least £3.75 million from the settlement, through an arrangement kept secret from investors.
Barbara Wood, 63, a retired academic from Yorkshire who signed up to the group, said: ‘The joy of RBS being held to account has quickly plummeted to anger and despair at the greed of one man. Shame on Gerard Walsh.’
Walter Johnston, a 61-year-old retired firefighter from Northern Ireland, said: ‘I am at a loss as to why the Government has not intervened to help solve this matter.’
The Mail on Sunday has offered to assist with Action Fraud’s enquiries by providing information. Action Fraud received its first complaint in February, but no investigation has been launched.
Complainant Barry Middleton, 73, a former RBS employee from Aberdeenshire, said: ‘I feel terribly let down by the action group. It certainly needs investigating.’
Retired civil engineer John Greenwood, 76, from Huddersfield, has also asked Action Fraud to investigate. He said: ‘It’s up to the members to take action against Gerard Walsh and company.’
Are you affected by this story? Email: william.turvill@ mailonsunday.co.uk