MFS founder accuses administrators of ‘internecine warfare’
The founder of collapsed shadow bank MFS has accused administrators of “internecine warfare” and harassment as the firm’s creditors fight to unlock billions of pounds in frozen funds, City AM can reveal. Paresh Raja, the chief executive of Market Financial Solutions who has denied claims he siphoned “vast sums” from the mortgage firm, has asked [...]
MFS founder Paresh Raja has criticized administrators for a "significant degree of internecine warfare" and harassment, as creditors attempt to recover billions of pounds in frozen funds. Raja, the former CEO of Market Financial Solutions (MFS), denies claims of embezzlement and has requested the High Court to consolidate all competing claims against him into a single process.
Raja faces five separate proceedings from MFS entities, totaling £1.5 billion, while Amber Bridging and Zircon Bridging, the creditor companies that placed MFS in administration, may file a sixth claim. Lawyers representing Raja allege administrators are advancing overlapping and inconsistent claims for the same pool of money. MFS, a UK non-bank lender, collapsed in February 2026, owing £1.1 billion to institutional lenders.
The multiplicity of claims is seen as a reflection of the structure of MFS. Raja's claim stems from a claim by London Bridging Limited, taken over by administrators from FRP, who seek to recover £51 million, previously £242 million. Administrators are also embroiled in a legal battle with Barclays over funds they claim are rightfully theirs but have been frozen by the bank.
Barclays held £160 million of MFS' funds at the time of administration, which it froze due to irregularities. Raja has accused Barclays of paralyzing the business and has criticized administrators for their "internecine warfare" tactics.
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