The creator of a collapsed British “shadow bank” accused of misappropriating £1.3 billion (US$1.7 billion) was reportedly a prolific high roller who wagered up to £60,000 ($60,000) per spin at prestigious casinos in London.

Paresh Raja’s company Market Financial Solutions (MFS) that provided mortgages went into administration in February amidst accusations of significant financial irregularities.

An insider revealed that Raja frequented the upscale Palm Beach Casino and Colony Club in Mayfair, an affluent area of London.

Reportedly, Raja was authorized to withdraw up to £600,000 ($800,000) a day from his bank account to finance his casino gambling activities, according to The Telegraph.

“He would play and play, drink and drink, and if he didn’t lose all his money at the Palm Beach, he would then get in a car and go around the corner to the Colony Club,” the source mentioned.

The publication does not assert that any misappropriated funds from MFS were used for Raja’s gambling ventures.

£408M Payments Alleged

It is alleged by the creditors of the company that there is a deficit of over £1.3 billion ($1.7 billion), while administrators have accused Raja of devising a scheme to extract funds from MFS and associated entities.

A lawsuit brought on behalf of creditors claims that Raja and his wife received more than £408 million ($545 million) from MFS-managed funds into personal bank accounts in the UK, Monaco, Singapore, and the United Arab Emirates, according to The Telegraph.

Raja has also faced allegations of acquiring a collection of luxury cars, including six Ferraris, three Aston Martins, three Rolls-Royces, and two Mercedes.

Both Raja and his wife have denied any wrongdoing and assert that no fraud or deception took place.

Rise and Fall

MFS functioned as a shadow bank, acquiring funds from banks and other financial entities to provide property loans to its clients.

Before its collapse, the company experienced substantial growth, with its loan portfolio reaching around £2.4 billion ($3.2 billion) by the end of 2024. The creditors included major financial institutions and private capital groups from around the globe.

In March, courts in London and Dubai imposed a worldwide freezing order on Raja’s assets up to £1.3 billion.

The order mandates Raja to declare assets exceeding £10,000 ($13,000) and restricts him from spending more than £5,000 ($6,700) per week without consent from MFS administrators.

The Financial Conduct Authority has initiated an enforcement investigation into MFS following these developments.

Casino Debts Predate MFS

Raja’s interest in gambling existed before his rise as a wealthy financier. Last month, The Times reported that he was declared bankrupt in March 2005 with debts of approximately £350,000 ($470,000), some of which were owed to casinos.

While his bankruptcy was discharged a year later, he remained under bankruptcy restrictions until March 2009. MFS was established in November 2006 by Pratibha Dewan, who later became Raja’s spouse.

Raja, who identifies himself as the founder of the company, only formally became a director in 2017.

Raja has labeled the accusations against him as a “personal vilification campaign.”