High Court hears £4.2 million loan dispute involving luxury car purchases and jewellery spending
Wealthy corporate investor Benjamin Gilbert has initiated High Court proceedings against financier Jamie Bleakley and his wife Shahena Bleakley over allegations that the couple failed to repay a substantial £4.2 million loan. According to court documents, the funds were allegedly diverted for extravagant personal expenses rather than legitimate business purposes.
Luxury expenditure under scrutiny
The High Court heard detailed evidence suggesting that the borrowed money was used to acquire multiple luxury vehicles, including Ferraris and Lamborghinis, alongside substantial jewellery purchases and premium airline tickets and hotel stays. Court records indicate that significant sums were spent on what Judge David Quest KC described as having "no apparent business purpose."
Between 2017 and 2019, Mr Gilbert, a 50-year-old corporate investor, provided several loans to the Bleakleys' finance company Broadoak to support its business activities. However, the company allegedly failed to repay the outstanding balance, prompting Mr Gilbert to initiate legal action through his investment firm BG Projects Ltd.
Complex financial arrangements and asset tracing
Financial investigations revealed that Broadoak had transferred between £800,000 and £1.5 million directly to the Bleakleys for personal expenses. Additional payments included £280,000 to a Dubai property developer and approximately £3.8 million deposited into accounts at TTT Moneycorp Ltd. Analysis of company payment records indicated that around £7 million received by Broadoak remains unaccounted for according to court submissions.
Despite Mr Gilbert managing to recover £600,000 in unpaid debts through previous efforts, the substantial £4.2 million balance remains outstanding after years of attempts to secure repayment. The court heard that Mr Gilbert had been listed as a shareholder in Broadoak Private Finance Limited but claims exclusion from company management since 2019.
International jurisdictional complications
The legal proceedings have encountered jurisdictional complexities, with the couple owning substantial international assets including a multi-million pound villa in Dubai's Arabian Ranches development and properties in Spain. Mrs Bleakley currently retains possession of two high-value vehicles: a Lamborghini Urus valued at approximately €175,000 and a Ferrari worth around €180,000.
Mr Gilbert sought continuation of a Worldwide Freezing Order imposed last year to prevent asset dissipation during recovery efforts, but the application failed on jurisdictional grounds despite judicial acknowledgment that this outcome might appear "harsh" given the strength of his claim. The case remains active, though it remains uncertain whether proceedings will continue in British courts or transfer to Spain, where Mr Bleakley and his companies maintain their primary base.
Judicial assessment and evidentiary concerns
Deputy High Court Judge David Quest KC expressed significant concerns about the couple's defence, noting that they had provided only cursory explanations for the substantial financial transfers. The judge observed that the Bleakleys appeared aware, or should have been aware through proper enquiries, that they had no legitimate right to the funds.
Mrs Bleakley's defence maintained that she believed the money represented legitimate proceeds from her husband's successful business career, stating: "I accept that I have received monies which have originated from my husband's businesses. However, I understood from my husband that he was entitled to transfer any such monies as the fruits of his successful business career."
However, Judge Quest found this explanation insufficient, noting that the couple failed to adequately justify or explain the payments and addressed crucial evidence "only in a cursory way" in their witness statements. The judge concluded there was strong inference that the Bleakleys knew they had no right to receive or benefit from Broadoak's funds.
Legal implications and ongoing proceedings
The judgment suggests Mr Gilbert has established a compelling case for potential recovery through constructive trust claims or equitable compensation for knowing receipt. Judge Quest indicated there was good reason to suppose Broadoak could recover assets from the Bleakleys to satisfy any judgment, particularly given the substantial expenditure on luxury goods without proper explanation.
Despite the jurisdictional setback regarding the freezing order, the case continues with both parties preparing for further hearings. The proceedings highlight the complex challenges of cross-border financial litigation and asset recovery when substantial funds are allegedly diverted for personal luxury spending rather than their intended business purposes.
