Page 292 - Bundle for MF Final

Bates no 291

MC If we could establish that the claims are genuine and they won't come back after you,
then we can negotiate a settlement.

LS We need to put pressure on him, we need to know that the funds aren't tainted.

MF He is not going to confess that these are the proceeds of crime.

MC That does happen. He was brave until he thought he was going to have to give
evidence in the witness box in his insurance claim.

MF I have no difficulty in saying on instructions at the round table meeting to Sig, "you're
a liar, you defrauded insurers and all this money is tainted", but what do we want to
achieve?

MC We have to check that the insurers are happy with the claim.

MF Will he walk away leaving Lou with all the money? How do we get to the bottom of
it all?

MC How do we get it - full disclosure from him or an assurance regarding the legitimacy
of the funds from his lawyers.

MF So we say in the face of him refusing to provide proper disclosure, we are not
prepared to enter into settlement discussions unless he gets a written assurance from
the insurers that they will not pursue him. I cannot advise about whether the money
is tainted, I can only advise regarding the family law aspects and what a judge will do
on the family case. I think on the evidence a judge will say that it is not a TOLA TA
claim - there was no intention for him to 'buy' an interest in the property. Was it a
gift? There we are in real difficulties. There is a recording of a phone call between
Louise and Sig where he says "it's not your money, it's my money from my insurance
claim". In a family context, he will lose on the pure TOLATA claim but I think on
balance, a judge will not conclude that he gave £0.Sm for no consideration. It is difficult
to get home on it being a gift [note for Louise - NB there is no presumption of advancement
per our first con - so a transfer of funds is presumed to be a loan or subject to a resulting
trust]

MC If he made a loan, then why do it without any explanation or documentation?

MF OK, so our position is that it is a gift.

MC You can gift something in a non-altruistic way. It wasn't on a conditional disposal.

MF Agree with that. But we want to dangle something in front of Sig to tempt him to
settle. Michael, you want truth and justice, Lou wants this to go away.

MC I also want this to go away. I think we struck a note with him with illegality of claims
- what would you advise him?

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