Accountant for failed £2bn shadow lender operated with only two staff members

Market Financial Solutions Faces Scrutiny Over Use of Small Accounting Firm

Market Financial Solutions has come under scrutiny for its use of small auditing firms - Betty Laura Zapata/Bloomberg

The financial company at the heart of a major fraud investigation in London reportedly engaged a very small accounting firm, staffed by only two people, to handle its £2 billion operations, according to information obtained by The Telegraph.

Market Financial Solutions (MFS), which recently went into administration following fraud allegations, named Magus Chartered as its primary accountants in its latest annual report.

Records indicate that Magus employed just two staff members in 2025, a decrease from three the previous year. The firm operates from a basement office near Victoria Coach Station in London, sharing the building with various charities and law firms.

Dipendra Amin, who owns Magus, also serves as a director for several companies that have received loans from MFS and its affiliates. These loans were secured against properties throughout the UK, including locations from Mayfair to Hounslow, as documented in Companies House filings.

It is possible that Mr. Amin was representing borrowers rather than being a direct recipient of the loans. In some cases, nominee accountants are appointed to act on behalf of the actual asset owners, allowing the real owner to remain anonymous while the nominee appears as the public face.

Magus did not comment on the specific services it provided to MFS, but clarified that it was not responsible for auditing the company.

Founded in 2002, Magus’s website states that the firm offers standard accounting and tax services, as well as business development advice.

There is no indication that Magus has engaged in any illegal or improper activity.

Nonetheless, the revelation about the firm’s small size has intensified concerns about MFS’s choice of business partners. The company’s reliance on small auditing firms has already raised eyebrows.

As of last March, MFS claimed to have a loan portfolio worth approximately £2.5 billion, serving clients across the UK, including property investors, international family offices, and well-known business figures and celebrities.

Firms of this magnitude typically engage large auditing companies, such as the Big Four or similarly sized firms, to review their financial statements and collaborate with their accountants.

Expert Opinions and Red Flags

Professor Paul Barnes, a finance and forensic accounting consultant and former Nottingham Business School professor, described the practice of large companies relying on very small firms for financial and legal services as “highly unusual” and a “clear warning sign.”

“It sends a signal to outsiders that something is amiss,” Professor Barnes remarked.

Details of the Collapse

MFS entered administration at the end of last month amid what a judge described as “very serious” fraud allegations. The company is accused of using the same assets as collateral for multiple loans, with at least £930 million reportedly missing from its accounts.

Background on MFS and Its Operations

As a so-called shadow bank, MFS did not accept deposits but instead financed its lending by borrowing funds itself. Major banks such as Santander, Wells Fargo, Jefferies, and Barclays were among those that provided backing to MFS.

The collapse of MFS has not only shocked the financial sector but also prompted the Bank of England to launch an investigation into the circumstances surrounding its downfall.

MFS specialized in buy-to-let mortgage lending and bridging finance, positioning itself as part of a rapidly expanding group of bridging lenders in the UK. These companies offer short-term, property-backed loans to clients who may not qualify for traditional bank loans, often at higher interest rates.

The company was founded in 2006 by Paresh Raja and his wife, Tiba. According to its website, Raja was dedicated to helping property investors who struggled to secure financing from mainstream banks.

Community Involvement and Company Culture

MFS was active in supporting events within the Asian community. In September of the previous year, it sponsored Indian singer Arijit Singh’s debut UK arena performance at Tottenham Hotspur Stadium in London. The company is also sponsoring an upcoming concert by Indian rapper Badshah in London.

Bloomberg reported that the walls of MFS’s Mayfair offices were once decorated with autographed cricket bats, boxing gloves, and signed Pink Floyd albums. However, when insolvency officials arrived to take control after the company’s collapse, the offices were reportedly stripped of most decorations.