Tonstate Group Limited (in liquidation) & Ors v Edward Wojakovski & Ors – High Court of Justice – [2024] EWHC 1245 (Ch) – Case Summary

Relevant for:

Insolvency practitioners, commercial litigators, fraud specialists

This case concerned an application by the liquidators of Tonstate Group Limited and its associated companies for further disclosure from Edward Wojakovski to aid in the enforcement of a judgment recognizing the proprietary claims of the Claimants over funds fraudulently extracted by the Defendant.

TLDR:

• Application for further disclosure by the Claimants to enforce judgment.
• Edward Wojakovski ordered to provide information on assets held by Maxima Corporate Holdings Limited.
• Information sought includes the origin of funds used to purchase two London flats.
• Edward Wojakovski's health and legal representation issues considered.
• Order includes provisions to ensure compliance without disproportionate effort.

The case involved the Tonstate Group of companies, which had been the victim of a fraud by Edward Wojakovski, involving the unauthorized extraction of over £13 million. The Claimants, including Tonstate Group Limited (in liquidation) and others, sought further disclosure from Edward to aid in recovering the remaining funds.

Mr. Justice Adam Johnson noted that the Claimants had partial success in recovering the funds but many millions remained untraced. The Claimants pressed for further information from Edward to continue their recovery efforts. The court recognized the proprietary nature of the Claimants' claims and the necessity of the disclosure for enforcement purposes.

The application against Edward was initially scheduled for 10 April 2024 but was adjourned to allow Edward time to secure legal representation. Despite this, Edward appeared without representation at the adjourned hearing on 14 May 2024. The court permitted his McKenzie Friend, Michael Marx, to speak on his behalf due to Edward's health condition and the importance of the order.

The court ordered Edward to provide information about the assets held by Maxima Corporate Holdings Limited and the Wojakowski Brothers Trust, as well as the origin of funds used to purchase two flats in London. The court found it reasonable to infer that Edward had information about these assets due to his connections with Maxima and the Trust.

Mr. Marx raised several points, including the consistency of the order with previous findings and the fairness of requiring Edward to provide information without a similar process against Arthur Maytas. The court addressed these concerns by emphasizing the need for Edward to account for the Claimants' property and the safeguards in the order to ensure reasonable efforts without disproportionate cost.

The court also considered Edward's health condition and allowed a generous period for compliance, setting the deadline for 3 July 2024. The order included provisions for Edward to explain his efforts to obtain the required information and to confirm any inability to provide exact details.

Legal representatives: Sam Goodman and Isabelle Winstanley (instructed by Rechtschaffen Law) for the Claimants. The Defendant appeared in person assisted by Michael Marx.

Judicial Panel: Mr. Justice Adam Johnson

Case Citation Reference: [2024] EWHC 1245 (Ch)