Collapsed Sentinel Broadcast hits Lloyds Bank with commercial fraud lawsuit
The liquidators of broadcasting equipment company Sentinel Broadcast have launched legal action against Lloyds Bank, the latest legal battle in the company’s fallout.
According to the High Court’s claim system, as seen by City PM, liquidators for Sentinel Broadcast have filed a commercial fraud case against the banking giant.
The company was appointed joint administrators at Quantuma back in July 2022, after the company and its director came under the microscope for its relationship with Arena TV.
Broadcaster Arena Television went into administration in late 2021 after collapsing with debts of £280m following allegations of alleged fraud.
Arena is suspected of concocting thousands of fake assets to score nearly £300m in loans. The collapse left 50 lenders, including Natwest and Close Brothers, out of pocket.
The Serious Fraud Office (SFO) has an ongoing investigation into Arena Television and its linked entities. On 23 February 2022, three sites were searched by the SFO with support from the National Crime Agency, leading to two individuals arrested and questioned.
Earlier this year, the joint administrators launched a lawsuit against Paul Froom, the company’s former director, over a breach of fiduciary duty.
Froom is also subject to a lawsuit by Kroll, the administrators of Arena Television, and its former chief Nicholas Cousins.
That lawsuit alleged that Sentinel Broadcast put £1bn into two undisclosed accounts over 18 years.
Specialist law firm boutique Isadore Goldman is instructed for the new legal action against Lloyds Bank. The filing system stated that the bank had called on Eversheds Sutherland for its defence.
This new legal action comes after Kroll filed a claim on behalf of Arena against Lloyds Bank and the Bank of Scotland in July, as City PM revealed.
A spokesperson for Lloyd’s Banking Group told City PM: “The Group has yet to receive the claim but once served intends to defend it. We don’t intend to comment further at this stage.” While the administrator at Quantuma declined to comment on the matter due to legal sensitivities.