A High Court judge has reported a participant in a court case to the Financial Conduct Authority, saying his behaviour calls into question whether he is a “fit and proper person” to be an FCA-approved person.
HH Judge Klein, said, in a judgment handed down today, that he had contacted the FCA about Nadav Livni, the managing director and founder of London-based investment company Hillview Group.
Hillview, which has been active in the UK property sector and claims to have managed more than $10bn (£7.9bn) of transactions since 2006, was being sued by Florestco Ltd, an investment vehicle owned by Israeli property investor Eliusha Ragimov.
The case is about a property investment project at Tilgate Business park in Crawley, West Sussex, called Elm Park Court.
Hillview marketed it as an investment in 2014. According to the ruling, Hillview was seeking investors so it could buy the property and turn it into eight investment units that it would sell at £500,000 each. Florestco invested £500,000.
However, in 2020, Hillview notified its investors that the project had failed. Blaming Brexit and Covid, it told them it planned to sell the property for £2.5m and use to money to pay off a bank loan. It also said Hillview itself would take a portion to support “holding costs.”
Florestco sued for, among other things, fraudulent misrepresentation, alleging that had it been properly informed, it would have made different business decisions.
The case went to court earlier this year, and in a 12-day trial, lawyers explained to the judge the intricacies of the deal.
In a complicated ruling handed down today, the judge dismissed the claims of misrepresentation, ruling that the investment memorandum “does not contain any actionable misrepresentations.” He ruled that Florestco was entitled to £1 for breach of contract.
The judge also expressed concerns about answers given both by Ragimov and Livni.
“Mr Livni’s evidence was not full or frank, or given with alacrity,” he said.
“The significant criticisms I have made of Mr Livni, both in his management and reporting of the project and as a witness, call into question whether he is fit and proper to be an FCA-approved person and, more generally, whether he is a fit and proper person to manage other people’s money.
“I have concluded that, in the light of what I have said, it is appropriate for a copy of this judgment to be provided to the FCA for it to decide how, if at all, it ought to proceed having considered the judgment.”
He said he had been told by a lawyer on the case that Livi had already reported himself.
“I must also record that Mr Livni offered me an undertaking to provide a copy of this judgment to the FCA” he said.
“I did not accept that offer. Instead, I will arrange for a copy of this judgment to be provided to the FCA as soon as possible.”
Florestco Ltd v (1) the Hillview Group Ltd (2) Hillview Real Estate Ltd (3) Hillview Alfa Holdings Ltd (4) Nadav Livni (5) Hillview Advisors Ltd
Business & Property Courts (JJ Judge Klein), 1 December 2023
