Reference no: EM133214938
Roger advertises himself as an expert investment manager. He receives £10,000 from Laura and £10,000 from Mahmood to invest as trustee on their behalf. He puts the money from Laura into a current account that he uses regularly as a temporary holding account for money received from investors, and then soon afterwards he puts Mahmood's money in the same account.
He then withdraws £10,000 from the account, which he uses up completely on a holiday for himself and his family.
Then he withdraws £5,000, buys a motorbike and gives it to his son, Matti.
Roger also receives £10,000 from another investor, Nalante, which he puts in a different current account along with his own money. The balance on this account is now £15,000.
He withdraws £10,000, all of which he loses gambling in a casino.
Later, Roger deposits £5,000 of his own money in the account, bringing the balance to £10,000.
Roger also receives £1,000 from Oban, which he uses to buy 100 lottery tickets for £10 each. One of the tickets wins £10,000.
Advise Laura, Mahmood, Nalante, and Oban with respect to their proprietary claims against Roger.
SUGGESTED APPROACH:
(a) Work through events chronologically
(b) Run a "tab" to keep track of how much money there is and who it belongs to.
Questions to consider:
- Whose money is used for each payment?
- Whose money is left in account?
- What should beneficiary claim at each point?
- What can beneficiary do if claim in equity fails?