This statement is intended to update all investors of 147 Racing Limited and Top Bet Placement Services (TBPS) of developments in the action that we (the FSA) have brought against Sean Fradley trading as TBPS and Gary Woodward.

We will try to mediate this matter following directions given by both the Court of Appeal and Mr Justice Lawrence Collins of the Chancery Division of the High Court. Since we last issued a press release on 22 October 2004, the following has taken place:

Hearing on 29 June 2005

  1. Following the summary judgment application and judgment, we appealed to the Court of Appeal. We contended that the Judge should have concluded that the scheme was a collective investment scheme for a longer period than he did. Mr Fradley contended that the scheme was not, at any time, a collective investment scheme. Mr Woodward did not appeal but wrote to the Court of Appeal asking it to consider his position in any decision it made.
  2. The Court of Appeal heard the appeals on 29 June 2005. The Court of Appeal concluded in its judgment dated 23 November 2005 that there was one small issue which should go to trial. But it went on to say that if that issue was determined in favour of the FSA, the Judge should indeed have concluded that the scheme was a collective investment scheme throughout.
  3. The orders which were later released to the parties set aside the paragraphs of Mr John Martin QC’s orders in which the freezing injunctions were maintained.

Hearing on 7 December 2005

  1. We returned to Court on 7 December 2005 before Mr Justice Collins and got the freezing orders reinstated. Both the Court of Appeal (at the end of the judgment) and Mr Justice Collins recommended that this matter be referred to mediation.
  2. Both Mr Fradley and Mr Woodward have limited assets but our injunction means their assets remain frozen.
  3. We are currently in settlement discussions with Mr Woodward and Mr Fradley. At the same time, we have applied to the Court for a Case Management Conference to put directions in place so we may proceed to trial in the summer if mediation is unsuccessful.