Manita Khuller has been unsuccessful in her legal bid to prove that a Guernsey-based trustee, FNB International, was responsible for the loss of her two final salary pensions worth £330,000 ($430,921, €386,574).
Representing herself in court in November, as she was unable to find a lawyer “willing to represent me”; Khuller, who has no legal training, argued that the trustee was ultimately responsible.
Unbowed by the adverse judgement, she told International Adviser that she plans to push ahead with an appeal.
What happened?
Khuller claims that she was “mis-advised” by an unregulated adviser while temporarily living in Thailand, resulting in the transfer of her two DB pensions into a Qrops.
The money was put into a Royal Skandia wrapper and invested in three funds, one of which was LM Investment Management – a property fund that turned out to be Ponzi scheme.
The other two funds are understood to have been unregulated.
What was the ruling?
Khuller told IA that the judge found she did not prove that the investment adviser was unlicensed or that the investments were unsuitable.
This was despite “all of the evidence and official notes” from the Thai Securities and Exchange Commission, and the fact that the LM Managed Performance Scheme (LMMPF) “is well-documented as being a Ponzi scheme”, she added.
Her lack of legal training left Khuller feeling nervous ahead of the trial, “but once I got going in the court room, I felt very much like I was in control of my destiny”.
She was also not alone, having an Australian barrister called Niall Coburn with her as a McKenzie friend – which is someone who is not necessarily legally trained but can provide support and guidance in court.
“All in all, it was a very well-run trial,” she said. “Though I am not a lawyer, I have had to learn.”
She strongly believes that the adverse judgement has “nothing to do with the conduct of the trial” but is more to do with “just protecting Guernsey plc”.
Not backing down
Khuller is trying to find a lawyer to represent her at the appeal “but it is very difficult”.
This is because the Channel Island “does not allow anyone but Guernsey advocates to represent in court and most of the big firms have rejected my approach, declaring a conflict of interest”.
“This is part of the prohibitive cost of legal representation in Guernsey,” she added.
