Founder of Collapsed MFS Faces £1.3 Billion Creditor Claim (1)

Paresh Raja, the founder of collapsed mortgage firm Market Financial Solutions Ltd., is facing a £1.3 billion ($1.8 billion) lawsuit in the UK from creditors alleging he breached his fiduciary duties.

Raja, who is already subject to a worldwide freeze on his assets, is facing litigation in London’s High Court, according to documents seen by Bloomberg. The case is being brought by officials overseeing the wind-down of MFS who said they’re seeking an order that he pay the £1.3 billion that is currently unaccounted for.

The administrators of the insolvency said they’re currently at the “starting point” of ...