Market Financial Solutions, the collapsed mortgage lender, made loans to a property company linked to Rex Ekaireb, a former chartered accountant who stood trial for allegedly laundering money for a London crime syndicate member. The loans, made in 2019 and 2020, were repaid years before MFS's £1.3 billion collapse into administration last month.

Ekaireb, 78, was acquitted in 2018 of financial crime charges related to his purported work for Michael Adams, brother of the alleged leader of the Clerkenwell Crime Syndicate. While there are no rules against transacting with individuals acquitted of criminal charges, the revelation has raised questions about MFS's lending practices and due diligence processes.

MFS's collapse has already sparked scrutiny of underwriting processes at major banks like Barclays and private credit lenders including Apollo's Atlas SP unit, which collectively lent over £2 billion to the bridging loan specialist. The property portfolio MFS lent against was tied to Stately Home London LLP, which listed £33.2 million in investment properties as of March 2021. Creditors now face a substantial shortfall amid allegations of fraudulent "double-pledging" of collateral and money diverted to unknown accounts.