Web of tiny accounting firms audited collapsed MFS property lending empire
#MFS collapse #accounting fraud #property lending #audit firms #Paresh Raja #Berkeley Finch #financial regulation #creditor claims
📌 Key Takeaways
- Multiple small accounting firms audited different parts of MFS's property lending empire before its collapse
- Creditors owed more than £2bn have alleged fraud against the insolvent company
- The 'patchwork quilt' of auditors has raised concerns about due diligence by large financial institutions
- Only MFS has been accused of wrongdoing so far, though several linked companies are also in administration
- The collapse threatens billions of pounds in losses on Wall Street
📖 Full Retelling
Creditors owed more than £2bn have made allegations of fraud against the insolvent property lending empire founded by Paresh Raja, which was audited by a collection of small London-based accounting firms before its collapse last week that has threatened billions of pounds in losses on Wall Street, according to reporting by Robert Smith and Ellesheva Kissin in London published March 5, 2026. Market Financial Solutions (MFS), the Mayfair-based company at the center of the scandal, claimed to offer 'complex, property-backed lending' through short-term bridging loans before falling into insolvency, leaving major financial institutions including UK lender Barclays and a unit of US private capital group Apollo Global Management facing substantial losses. The auditing of MFS and its related entities was handled by multiple small accounting firms rather than a single major audit provider, raising serious questions about the oversight of the sprawling lending empire and the due diligence performed by the large institutions that funded its operations. The patchwork approach to auditing included Berkeley Finch, which provided an unqualified opinion on MFS's 2024 accounts while employing just 11 staff, Silver Levene (recently acquired by Xeinadin), which audited Amber Bridging and Zircon Bridging, and Sterling Young, a firm with only four employees that audited PSR Equities. This fragmented auditing structure has drawn criticism from industry professionals, with a senior auditor at one of the UK's largest accounting firms describing it as a 'pulsating red flag' that prevents auditors from seeing the full picture of a business's financial health.
🏷️ Themes
Corporate governance, Financial fraud, Regulatory oversight
Entity Intersection Graph
No entity connections available yet for this article.
Original Source
Web of tiny accounting firms audited collapsed MFS property lending empire on x (opens in a new window) Web of tiny accounting firms audited collapsed MFS property lending empire on facebook (opens in a new window) Web of tiny accounting firms audited collapsed MFS property lending empire on linkedin (opens in a new window) Web of tiny accounting firms audited collapsed MFS property lending empire on whatsapp (opens in a new window) Save Web of tiny accounting firms audited collapsed MFS property lending empire on x (opens in a new window) Web of tiny accounting firms audited collapsed MFS property lending empire on facebook (opens in a new window) Web of tiny accounting firms audited collapsed MFS property lending empire on linkedin (opens in a new window) Web of tiny accounting firms audited collapsed MFS property lending empire on whatsapp (opens in a new window) Save Robert Smith and Ellesheva Kissin in London Published March 5 2026 Jump to comments section Print this page Stay informed with free updates Simply sign up to the Financial services myFT Digest -- delivered directly to your inbox. A collection of small London-based accountancy firms was tasked with auditing a sprawling property lending empire whose collapse has threatened billions of pounds in losses on Wall Street. The collapse of Mayfair-based Market Financial Solutions and several linked companies owned by its founder Paresh Raja last week has prompted allegations of fraud from creditors that extended more than £2bn to the group. MFS, which claimed to offer “complex, property-backed lending” comprised of short-term bridging loans, was last audited by high street accounting firm Berkeley Finch, which signed off its 2024 accounts with an unqualified opinion. Berkeley Finch was paid £72,375 that year for its work at MFS, which owed money to UK lender Barclays and a unit of US private capital group Apollo Global Management when it fell into insolvency. The accounting firm, which shares a floor with a ...
Read full article at source