Cayman authority receive complaints from shareholders
By Harry Wilson The Telegraph
Investors round on Harvey Boulter
Financier at centre of the scandal that led to the resignation of the former defence secretary, Liam Fox, faces a series of complaints from investors in one of his businesses
The financier at the centre of the scandal that led to the resignation of the former defence secretary, Liam Fox, is facing a series of complaints from investors in one of his businesses.
Investors in Cellcrypt, a supplier of communications encryption technology to governments, have complained to the Cayman Islands regulator about Harvey Boulter, the Dubai-based chief executive of private equity firm Porton Capital.
The objection regards a deal involving the transfer of technology from the business to another company, Seecrypt. In a letter to the Cayman Islands Monetary Authority seen by The Telegraph, shareholders complained about a licensing agreement that handed Seecrypt, which is chaired by Mr Boulter, the rights to commercialise the company’s technology.
The investors claim they were never told about the Seecrypt deal until after it happened and that Mr Boulter has refused to give detailed information on the agreement. Mr Boulter has countered that Seecrypt paid Cellcrypt a “very significant fee” and that the company would also receive “substantial” royalties for its technology.
He added that Seecrypt had spent nearly two years and millions of dollars working to commercialise Cellcrypt’s technology.
“This structure has not negatively impacted Cellcrypt’s business,” Mr Boulter said.
A June 2011 meeting between Mr Boulter and Mr Fox to discuss a legal dispute became a political scandal that led to Mr Fox’s resignation.
PHOTO: A meeting involving Dr Fox, Mr Werritty and a private equity tycoon, Harvey Boulter, with interests in a defence company started the controversy that engulfed the former Defence Secretary in 2011
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