London and Dubai courts back asset restraint and travel ban after lender collapse
A worldwide freezing order of up to £1.3 billion has been made against Paresh Raja (pictured top), the founder and chief executive of Market Financial Solutions (MFS), following allegations of fraud after the collapse of the UK mortgage lender.
The orders, which were granted by courts in London and Dubai, prevent Raja from dealing with assets up to the suspected value of funds alleged to be missing from the bridging and buy-to-let lender. The court decisions also include a travel ban. Raja is believed to be in the United Arab Emirates.
The applications were brought by insolvency practitioners at AlixPartners, appointed after MFS entered administration.
MFS, which provided short-term property finance, was owned by Raja and his wife. It filed for administration last month amid allegations of fraud, leaving financial firms owed more than an estimated £1.3 billion.
Owner of collapsed lender MFS hit with freezing order https://t.co/Wymcg8J1ou
— City A.M. (@CityAM) March 19, 2026
Court documents describe a structure in which companies owned by Raja borrowed from a range of institutions — including banks and hedge funds — and then lent funds into MFS, which provided mortgages and bridging loans to borrowers.
Two Raja-owned intermediaries, Zircon Bridging Ltd and Amber Bridging Ltd, were placed into administration. That step triggered MFS’s insolvency. Administrators for Zircon and Amber then sought urgent court orders, arguing that directors and owners of some companies that ultimately received MFS mortgages were individuals connected to Raja.
Creditors have argued that the borrowers — which appear to share the same registered address and accountancy firm as MFS — “may have been a device designed to extract monies” from Zircon and Amber “on false pretences”.
There are also concerns that some lending may be unsecured and therefore difficult to recover. Allegations include “double pledging”, where security is granted to two or more institutions at the same time over the same property.
Raja has made limited public comment. His lawyer told the Daily Telegraph: “Mistakes have been made but there has been no intention to defraud whatsoever and Mr Raja has not been the beneficiary of any shortfall (if any) there may be. These allegations are based on fundamental misunderstandings and assumptions and are materially incorrect.”
Lenders reported to have exposure include banks such as Barclays, Jefferies and Santander, and private credit and hedge fund firms including Elliott Management, Castlelake and Apollo’s Atlas SP unit.
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