Following a 7-week trial at Southwark Crown Court, David Kennedy has been found guilty of “fraudulent trading” relating to his part in a £107m investment fraud. Paul Raudnitz KC led for the SFO, which brought the prosecution.
David Kennedy and his business partner Timothy Schools (who was convicted and sentenced to 14 years in prison in August 2022) managed the Cayman Island registered company the “Axiom Legal Finance Fund” for over two years. They promised investors a secure return, by offering loans to UK law firms that were pursuing no-win-no-fee cases and where there was purportedly a high chance of success. Some £107m was invested into the Fund.
Investor funds were then diverted into a variety of offshore bank accounts and complex trusts. Mr Kennedy benefited personally in the sum of £5.8m.
Paul Raudnitz KC has been instructed in the case since shortly after the inception of the SFO investigation, advising and appearing at every stage in the proceedings.
The conviction of Mr Kennedy represents the successful culmination of an extremely complex investigation stretching back over ten years.
Mr Kennedy will be sentenced on Friday 7th June.
SFO press release can be accessed here.
Paul Raudnitz KC