Hoodless Brennan bids to get back £1m from fraudster

Hoodless, which has been slowly reinventing itself after run-ins with regulators over the years, has obtained a High Court judgment against Ramsden, who owes the firm £1.13 million.

A City dealer and gambler of near-legendary repute, Ramsden asked Hoodless to buy shares on his behalf but never paid for them.

Explaining why a trial would not be necessary, the High Court ruled that "the defendant has no real prospect of successfully defending the claim".

Ramsden, who once bet £1 million on one horse and was jailed in 1998, said through his solicitors Cumberland Ellis: "Settlement arrangements are under discussion and an amicable conclusion is imminent."

Hoodless Brennan seemed less sure that it is about to get its money back, but denies the loss has caused it difficulties. Chairman Andrew Baker said: "No company can say they are happy to lose a sum in excess of £1 million, but it is entirely manageable."

Asked why his firm had agreed to do business with Ramsden, he replied: "One has clients from all sorts of walks of life. You have to treat them as they come. People who present a reasonable case are looked at in the light of that."

Ramsden went bust in 1987, owing £142 million. He was later sent to prison for hiding money from his creditors, using his mother to channel it abroad.

He has since returned to the world of racing, and was briefly chairman of Walsall FC. At one point, he was the 57th-richest person in Britain with a fortune of £150 million, made from betting on the Japanese stock market.

The Ramsden issue comes at an awkward time for Hoodless, which was fined £90,000 by the Financial Services Authority in 2003 for "unacceptable sales practices and not treating customers fairly". Nigel Smith, an FSA compliance expert brought in to clean up the firm, has recently moved to Australia although he remains an employee.

Director of dealing Wayne Philips has been asked to step down, although he also is still at the company.

Sean Blackwell, once described by the FSA as a man not "fit and proper" to work in the City, remains in charge of marketing.

Baker says the company was recently given a clean bill of health by the FSA after a routine visit.

The chief executive is now Geoffrey Hoodless, one of four founders who own about 80% of the business.

During the dot-com era, Hoodless Brennan was considering a flotation that would have valued it at £150 million. Baker said a float on AIM is still on the cards, but puts the company's current value at between £30 million and £45 million.