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Last Updated: Monday, 13 March 2006, 22:26 GMT
Langbar sues over missing 365m
The Royal Courts of Justice in London
Langbar has launched proceedings in The High Court
Bosses at a firm called Langbar have started legal action against former bosses to recover millions of pounds said to be owed to investors.

Shareholders claim they are victims of a bogus assets fraud involving 365m worth of funds thought to have been in Brazilian and Dutch bank accounts.

They want to recoup the 100m invested in Langbar shares, which were suspended from London's Aim market last October.

The Serious Fraud Office is also investigating Langbar's finances.

They are examining claims made in Langbar's accounts that it had bank deposits totalling 365m, held in Brazil and the Netherlands.

High Court proceedings

Last November, Langbar said that forensic accountants from Kroll had been "unable to establish the existence of, or verify the company's entitlement to, any of the relevant assets at any time in the company's history".

When its shares were suspended on 12 October, the company had a market capitalisation of 87m.

At a shareholder meeting last February, Langbar's new chairman, David Buchler, revealed the company had just 3m in cash.

On Monday, the new management said they had launched High Court proceedings against two former directors of Langbar, Mariusz Rybak and Jean Pierre Regli, and Abraham Arad Hochman of Lambert Financial Investments.

They have also served an injunction freezing their assets around the world.

The defendants have denied any wrongdoing.

"It is our intention to recover as much as possible for the benefit of the company and its shareholders," said Mr Buchler.

"It has already been a very substantial task establishing what we believe has happened and determining what we can recover."

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