A peer-to-peer property lending business that attracted tens of millions of pounds from ordinary investors was put into administration after its board discovered an unauthorised loan to its chief executive.
In the latest example of alleged mismanagement in the industry, it has emerged that The House Crowd had a series of governance failures in the run-up to its collapse.
The House Crowd, based in Altrincham, has been in administration since February and investors are owed £52.7 million in capital and interest.
Administrators from Quantuma had originally said that the insolvency was “not expected to have a material impact on investors/lenders” as they wound its loan books down. However, after closer assessment of the group, Frank Ofonagoro, a director at Quantuma, warned that “in most cases,
Read More:Loan to founder sealed fate of peer-to-peer firm The House Crowd