Market Financial Solutions (MFS) administrators have accused owner Paresh Raja of misappropriating at least £1.3bn to fuel a 'lavish lifestyle', including purchasing luxury cars and UK properties worth over £950m. The lawsuit filed at London’s High Court alleges Raja received hundreds of millions to personal accounts in the UK, Monaco, Singapore, and the UAE, exploiting MFS funds as if they were his own.

MFS, which collapsed in February, specialised in high-interest bridging loans against property, sparking losses for banks like Barclays and Apollo’s Atlas. Administrators claim Raja and his wife received over £408mn to personal accounts, with funds used for 'a vast number of cars' including Aston Martins, Mercedes, Ferraris, Rolls-Royces, and cash transactions like an alleged £150,000 collection in 2022. They also allege he instructed employees to destroy 35,000 files from MFS’s Dropbox.

Raja, currently in Dubai, is subject to a worldwide travel ban and asset freeze, with administrators stating his disclosures have been 'inaccurate and incomplete'. Raja’s spokesperson denies fraud, claiming missing assets were held through nominee structures for MFS and creditors. Administrators estimate £1.27bn misappropriated from MFS’s £2.6bn borrowings, based on an internal spreadsheet showing only £1.18bn in mortgages and £173m in corporate accounts. The failure of MFS has heightened concerns about lax underwriting standards in asset-backed lending markets.

The lawsuit claims Raja failed to explain the missing funds, with his lawyers responding that 'God only knows'. Administrators allege he exploited MFS’s funds to purchase UK residential properties and luxury vehicles, while Raja’s team defends nominee structures as part of a larger group beneficially held for MFS and lenders.