A WHISTLEBLOWER who first raised allegations in 2010 against the Royal Bank of Scotland’s global restructuring group (RBS-GRG) has launched a one-stop litigation shop to handle claims against financial institutions.

Neil Mitchell, a former CEO of software company Torex Retail – whose evidence to investigators led to three of its executives being jailed – has long been a critic of the GRG, which was also involved with the software company.

He has now launched Banks Claims Group Ltd (BCGL) as a new claims management platform with a fresh approach and no funding from financial institutions.

It will be an alternative business structure (ABS) – a law firm overseen by the Solicitors Regulatory Authority (SRA) – boasting effective governance and transparency.

He said the firm had already amassed more than 500 validated cases with a “conservative” value of £2.5 billion and would initially manage RBS GRG litigation in the UK and Ireland, as well as cases in Germany and the US. Another part of the company will deal with Lloyds HBOS claims.

The headline allegations in the UK actions will be that RBS and Lloyds HBOS, through their business restructuring units, “systematically sought to defraud their customers for their own commercial purposes” by targeting cash and asset-rich firms which were referred to the units and hit with heavy charges, before being placed into an insolvency process, where assets were allegedly sold off at below market value.

Mitchell said there is a widespread belief among victims of bank crime, politicians, the media and the general public that RBS through its GRG acted unlawfully, and that many businesses losses are a direct consequence of misconduct and deserve proper compensation. He was also responsible for leaking the Financial Conduct Authority (FCA) report into the GRG and BCGL is now pursuing an application with the Royal Courts of Justice for a judicial review of the regulator’s actions over the inquiry and report.

“The bailout of RBS and Lloyds caused austerity and we all still suffer 10 years on, but here we have claims of alleged fraudulent misconduct by a state bailed-out, state majority-owned RBS, state-supported, state-regulated RBS and Lloyds HBOS,” he said.

“Theresa May’s government has refused all calls for a public inquiry, a new tribunal system, legal and regulatory changes or compensation for what has been called ‘the largest theft anywhere ever’. There are five million small businesses in the UK employing 20 million people who are the growth engine of our economy – 30,000 British businesses have been destroyed by RBS, NatWest and Ulster Bank.

“BCGL provides a platform to hold the banks to account on a large scale to pursue justice and compensation for all victims of alleged RBS GRG and Lloyds HBOS misconduct.”