Loans to Duchess of York under investigation
21 May 2020

Administrators of an entertainment company linked to Sarah, Duchess of York are investigating a number of allegedly suspicious transactions.

Insolvency practitioners are looking at loans, investments and some related-party deals entered into by Gate Ventures, which was chaired by Lord Grade of Yarmouth, the former BBC boss.

Hundreds of thousands of pounds of loans written by the company to the duchess, a former director of Gate, and loss-making theatre investments linked to Lord Grade, 77, are among the transactions under scrutiny.

Gate was founded in 2015 and backed West End shows such as 42nd Street and Sunset Boulevard, as well as films and start-ups.

The business was placed in administration in March after it failed to fend off a High Court claim from Zheng Youngxiong, an investor who claimed that the business owes him £2.5 million.

Insolvency practitioners from Quantuma are investigating the company’s affairs and are trying to return money to creditors, while an administrator from Moore Kingston Smith is examining counter-claims made by Gate concerning Mr Zheng’s conduct.

The duchess, 60, was a director of Gate between July 2017 and December last year. She received a £290,000 personal loan from Gate, while Ginger & Moss, a tea company that she set up, received a loan of £232,000.

By James Hurley, The Times, 20 May 2020

Read more at The Times

RiskScreen: Eliminating Financial Crime with Smart Technology

You can claim CPD minutes for this content, by signing up to our CPD Wallet

FREE CPD Wallet