London Stock Exchange regulators waited eight months before they suspended trading in shares of collapsed finance group Versailles despite being aware of a Department of Trade and Industry (DTI) investigation into the firm, a court heard yesterday.
The DTI probe, codenamed Revolver, began in April 1999. Stock Exchange inquiry team manager David Blunt told Southwark Crown Court he was aware of this but it was November before the Exchange ordered Versailles to appoint accountants to investigate its books. The shares were suspended the following month.
It was also claimed that, two-and-a-half weeks before the order was given, house stockbroker Teather & Greenwood advised Versailles directors to sell 6% of their shares in the company.
Founder and chief executive Carl Cushnie, who denies two fraud charges, sold 13.9m shares for Ј29m. They were worthless a month later.
