Anthony Watson, the founder of Bank of London, is in a legal dispute with one of the investors in the troubled fintech over alleged unpaid debts.
Watson, who launched the fledgling clearing bank in 2021 but abruptly left last year, has been hit with a statutory demand from Miami-based Forgelight relating to money he is said to owe the investment firm.
Statutory demands are formal written requests to pay a debt and can be a precursor to bankruptcy proceedings.
Court records show that Watson filed an application on September 19 at the High Court to set aside the demand and is represented by Mayfair-based law firm Janes Solicitors.
While it is not clear how much the claim is for, Forgelight was a significant investor in the bank and participated in an initial funding round in 2021 that raised $90m. The investment firm was also involved in a later funding round in 2023 for $40m.
Bank of London declined to comment and would not confirm whether or not Forgelight was still an investor in the bank. Watson was contacted for comment via Janes Solicitors, while Forgelight was also contacted for comment.
Earlier this month, Bank of London formally announced the removal of Watson as a “person of significant control” in the firm, issuing filings that stated he no longer owns or has any control in the company.
Watson left the fintech last September, just days before it was announced that it had received a winding-up order from HM Revenue & Customs regarding an unpaid tax bill, which was later withdrawn.
A month later, Labour grandee Peter Mandelson and US private equity boss Harvey Schwartz resigned from the bank’s board.
A person with significant control is an individual who holds over 25 per cent of a company’s shares or voting rights, or has the authority to influence key business decisions. Although the filing came this month, ties with Watson were cut in April.
The change came after a turbulent period for the fintech, with the parent company posting losses of almost £50mn for 2023, its most recent set of accounts. It is the third straight year of deficits for the holding company, with total losses since launch now approaching £110mn.
In May, the bank also revealed that the Prudential Regulation Authority is investigating it regarding “certain historical matters.”
A spokesperson for Bank of London previously told The Banker: “The latest accounts relate to a financial year in which the bank operated under entirely different leadership. Since then, under new ownership — and having secured £57mn of Mangrove Capital-led funding and with a commitment of a further £25mn — the bank has embarked on a comprehensive transformation.”