EDWARD VANDYK, the City banker well well known as Doctor Death, is being sued for 4m by Izodia, the dotcom association at the centre of one of the Citys largest recent frauds.
Vandyk give up last week as arch senior manager of Astaire, the corporate brokerage, less than eighteen months after winning carry out of the business. He pronounced the resignation was stirred by a idea that his impasse was attracting negative comment.
Vandyk, who is a executive of Mulberry, the oppulance conform label, is nicknamed Dr Death in the City for the large series of struggling companies he has had put in to administration.
Papers filed at the High Court lay that Vandyk, who assimilated Izodias house in 2002, unsuccessful to divulge the seductiveness of Gerald Smith, the convicted fraudster, in the group.
The explain says Vandyk secluded this by backdating documents. Corporate Synergy, the brokerage founded by Vandyk, is declared as the second defendant.
Smith pleaded guilty to defrauding the association of 34m in 2006, and was since an eight-year prison sentence.
Izodia is suing Vandyk for the volume it paid in a skill contract in 2002.
It gave Orb Estates, a association tranquil by Smith, 4.25m to take over the leasehold of the bureau buildings, Wellcroft House in Slough and Technology House in Langley.
Orb done usually one buliding rent remuneration of about 300,000, according to the court papers. Izodia is right away attempting to scratch behind the rest from Vandyk.
The justice writings say: With the difference of a singular quarterly rent payment, that contract incited out to be meaningless for Izodia.
The defendants wrong control cost Izodia we estimate 3.9m. In addition, Mr Vandyks control done his services as a executive worthless.
Izodias authorised group will disagree that the house would never have authorized the deal, that was allegedly referred to by Vandyk, if they had well well known of his relationship with Smith.
They explain Vandyk breached his fiduciary avocation by unwell to divulge that Smith had been piece of unison celebration that took a 26% seductiveness in Izodia. It was through this seductiveness that Vandyk got his chair on the board.
They additionally explain Vandyk backdated writings and combined fake loan agreements to furnish an erring jot down of the unison partys merger of shares in Izodia, concealing Orbs seductiveness in the stake.
Court writings say: If Mr Vandyk had over his fiduciary duties and had not acted negligently, he would have disclosed the secluded facts. If he had done so, Izodia would not have entered in to the (property) transaction.
A orator for Vandyk said: These claims are wholly illogical and Edward Vandyk looks brazen to contesting them in open court. He would quite like to highlight that, as a executive of Izodia, he acted in great conviction at all times.
Vandyk was a executive of Izodia for usually 3 months in between May and Aug 2002. AIM-listed Izodias share cost appearance at the tallness of the dotcom boom. Its marketplace worth strike 1.7 billion in Mar 2000 but by mid-2002 it had in outcome ceased trading, apropos a money bombard with 33m in the accounts.
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