RBS manager dishonestly assisted Marrache brothers in their multi million pound fraud, Supreme Court rules

A Royal Bank of Scotland manager dishonestly assisted Benjamin, Isaac and Solomon Marrache in their misuse of client monies. That is the conclusion reached on Thursday by Supreme Court Judge Adrian Jack, who says the bank is liable.

In July 2014, Benjamin, Isaac and Solomon Marrache were found guilty of conspiracy to defraud their clients, leaving a hole of more than £28 million.

Online gaming millionaire Jim Magner was one of the Marraches' clients; he claimed they stole over £9.1 million from him in 2007 and 2008.

He brought a legal action against the Royal Bank of Scotland, claiming the bank had dishonestly assisted the Marrache brothers in their stealing of his millions, which were supposed to be part of a pension pot.

Puisne Judge Adrian Jack heard live evidence over two and a half weeks in June & July, which drew on hundreds of documents organized in arch-lever files on shelves that were temporarily installed in the Supreme Court to handle the vast volume of paper work.

Having considered all the facts presented to him, Mr Justice Adrian Jack issued an 82-page judgement on Thursday. He has found that one relationship manager, Howard Shaw, had actual knowledge of the Marraches' misuse of client monies and dishonestly assisted them to continue their fraud. The Judge has also found that the bank is liable for Mr Shaw's actions.

As a result, Mr Magner - the individual suing RBS - now stands to recover up to 10 million Euros, plus interest. £400 thousand in legal costs have already been awarded by the Judge.

RBS considering next steps

In response to Thursday's judgment, RBS issued a statement noting the Supreme Court’s decision. The bank said it is "naturally disappointed at the outcome". A spokesperson said: "We’ll now take time to consider the judgment in detail before we determine our next steps".

RBS were represented by Nicholas Medcroft, Owen Smith and Guy Stagnetto QC. Stephen Moverley Smith QC and Charles Simpson appeared for Jim Magner (and T&T Trustees Ltd, listed as co-claimants).

Two of the three Marrache brothers have already been released from Windmill Hill Prison, only Benjamin Marrache is still behind bars. The ramifications of their fraud continue to be felt.