Lord Rothschild is sued for £1.5bn

LORD Rothschild, chairman of fund manager RIT Capital Partners, and a colleague are being sued for up to £1.5 billion by a former client who alleges that they acted against his interests.

Businessman David Elias issued proceedings against Rothschild and Paul Griffiths, an employee of RIT, on Tuesday alleging breach of contract and fraud.

Elias' proceedings relate to Richbell, his fuel card business, which collapsed after a venture with RIT and Jupiter, a Wall Street firm introduced by Rothschild's firm, got into difficulties. He is also suing RIT, Jupiter and eight further defendants for £140 million after he won the right to appeal last month against an earlier judgment.

Elias alleges that he appealed directly to Rothschild to become involved after his relationship with John Sprague, an employee at Wall Street fund group Jupiter, became acrimonious.

Elias' writ alleges that assurances 'and continuing representations that Rothschild' was acting on his behalf, meant that he did not properly monitor his personal business interests.

RIT responded: 'These are old charges that have already been thoroughly discredited by the New York courts. The New York Court has dismissed 30 out of the original 33 claims, including all the claims now being re-asserted by Elias. If Elias wishes to pursue them again, we are confident that they will be discredited once again.'