UBS Director Criticised in UK Court Case

Stephen Harris

22 December 2005

A UBS managing director, Jon Wood, has been criticised by a UK judge for “making up” some of his testimony in a case he brought in conjunction with Peter Wilkinson, the founder of Internet Service provider Freeserve against high-profile Scottish multi-millionaire Sir Tom Hunter. Sir Tom won the £100 million lawsuit brought against him by the two, who were large minority shareholders of bankrupt gifts retailer the Gadget Shop, who alleged that the Gadget Shop was cheated out of buying greeting cards retailer Birthdays Group and instead used his own investment firm to purchase the chain. Sir Tom’s private banking relationship with UBS, which he has had since 2001, is also in doubt, according to widespread reports. The Scottish multi-millionaire, who has more than £100 million invested with UBS's private client division, was quoted in the UK Guardian newspaper as having: "an exceptional relationship with HBOS, Citigroup and Rothschilds. However, all other banking relationships are under review. There are plenty of banks with integrity out there and we look forward to working with them in the new year". Sir Tom has said that he is expecting calls from other private banks in the near future. He ranked as Britain's 73rd richest man in a 2004 survey in the UK's Sunday Times magazine, with an estimated net worth of £500 million. Mr Wilkinson ranked 161 in the survey. The judge in the Gadget Shop case, said that the “unreliable” and “evasive” Mr Wood made up his testimony about alleged discussions about the Birthdays deal in February 2003. “I do not consider that he is being honest in everything he says. He came across as a very hard and calculating man albeit attempting to present himself in a much softer way. Where his evidence differs from those of other witnesses, I prefer theirs,” he said. Mr Wilkinson and Mr Wood jointly own around 40 per cent of Gadget Shop, which was placed into administration earlier this year after it failed to find a buyer. The pair had asked the court to compel West Coast Capital to buy their shares for the price they would have been worth had the company purchased Birthdays.