Police investigating a “substantial fraud” against credit card processor E-Clear were thwarted by a lack of co-operation from its chief executive, the latest report from administrators BDO has revealed.
The Metropolitan Police have examined transactions between an individual, who has not been named, and the company.
However, they have not been able to secure a conviction “due to the lack of co-operation from E-Clear former chief executive Elias Elia and the company’s ex employees”.
The administrators were granted a freezing order against the individual’s bank account and have confiscated more than £30,000. However, BDO believes E-Clear was entitled to around £50,000.
The report also revealed that unsecured creditors’ claims against E-Clear now total £127 million but it is not clear whether any funds will be available.
BDO’s own enquiries have led to a £4.3 million High Court claim against Elia, which is still ongoing. Questions were raised about E-Clear’s involvement in the failure of Scottish airline Globespan, which collapsed in December 2009, amid claims it withheld payments from the firm.
Secured creditors of Globespan are expected to be paid, but customers have been told they will receive only a small percentage of what they originally forked out.
E-Clear was placed into creditors’ voluntary liquidation last year after High Court proceedings brought by PricewaterhouseCoopers, the administrators of Globespan.
Elia always insisted he had done nothing wrong and that his firm, that also provided credit card facilities for Libra owner Allbury Travel Group and XL Leisure Group, provided a vital lifeline to struggling companies.