Capital Corp sues three former employees

Nigel Cope

City Correspondent

Troubled casinos operator Capital Corporation yesterday issued a writ against one of its former directors and two former employees "for conspiracy to injure the company and other matters arising since 1996". The company said it had taken the action "to defend the value of the business".

Capital has been hit by a series of damaging allegations about its operations which have included questions over its gaming controls and food and beverage operations as well as the conduct of directors.

Those cited in the writ are Kenneth Thompson, the former acting chief executive, Des Pereira, the former company secretary and head of finance, and Guy Hutchinson, the former purchasing manager for food and beverage.

The writ claims that the three man formed a "conspiracy" which included:

r bringing the company and its management into disrepute;

r hampering the company in the presentation of its business and the financial position in its audited accounts and its defence against the hostile pounds 192m takeover attempt by London Clubs International; and

r that they encouraged 11 other employees to wrongfully terminate their contracts in April and that they disseminated confidential information about the company, including board minutes, to the press.

Capital is seeking damages, the return of all confidential information and an injunction preventing further disclosures.

There is an additional claim against Mr Thompson for damages "on any profits made by reason of his breach of his duty [to Capital Corporation] as a director from 7 September 1993 to 22 May 1997".

The writ claims that Mr Thompson, a former finance director of Royal Bank of Scotland, acted on behalf of Ogden Corporation, a rival US casino group in connection with the proposed acquisition of the Cromwell Sporting Enterprises business which owns the Cromwell Mint casino. Capital Corporation was also trying to acquire the Cromwell Mint casino at the same time.

There is a further claim that in early 1997 Mr Thompson, Mr Pereira and Mr Hutchinson acted "to make a secret profit" by procuring Capital to purchase high-quality Cuban cigars for pounds 104,450 from a business in which they had an interest.

It is expected that Mr Thompson and Mr Pereira will hold a press conference later this week to present their case. It is also understood that Mr Thompson's lawyer has a letter from Ogden's saying that he never acted for them.

Capital's chairman, Ernest Sharp, said the company would "continue to defend the company's business and interests vigorously".

The Gaming Board, which regulates the casinos industry, is looking at the company's affairs following the allegations. Derek Burns, its deputy chief inspector, said the Gaming Board had the right to enter Capital's premises at any time during its gaming hours and inspect documents and computer files.

Start your day with The Independent, sign up for daily news emails
i100 In this video, the late actor Leonard Nimoy explains how he decided to use the gesture for his character
Arts and Entertainment
Secrets of JK Rowling's Harry Potter workings have been revealed in a new bibliography
arts + ents
Down-to-earth: Winstone isn't one for considering his 'legacy'
ebooksA special investigation by Andy McSmith
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs Money & Business

SThree: HR Benefits Manager

£40000 - £50000 per annum + pro rata: SThree: SThree Group have been well esta...

Recruitment Genius: Office Manager / Financial Services

£30000 - £37000 per annum: Recruitment Genius: Established in 1999, a highly r...

Jemma Gent: Year End Accountant

£250-£300 Day Rate: Jemma Gent: Are you a qualified accountant with strong exp...

Jemma Gent: Management Accountant

£230 - £260 Day Rate: Jemma Gent: Do you want to stamp your footprint in histo...

Day In a Page

HIV pill: Scientists hail discovery of 'game-changer' that cuts the risk of infection among gay men by 86%

Scientists hail daily pill that protects against HIV infection

Breakthrough in battle against global scourge – but will the NHS pay for it?
How we must adjust our lifestyles to nature: Welcome to the 'Anthropocene', the human epoch

Time to play God

Welcome to the 'Anthropocene', the human epoch where we may need to redefine nature itself
MacGyver returns, but with a difference: Handyman hero of classic 1980s TV series to be recast as a woman

MacGyver returns, but with a difference

Handyman hero of classic 1980s TV series to be recast as a woman
Tunnel renaissance: Why cities are hiding roads down in the ground

Tunnel renaissance

Why cities are hiding roads underground
'Backstreet Boys - Show 'Em What You're Made Of': An affectionate look at five middle-aged men

Boys to men

The Backstreet Boys might be middle-aged, married and have dodgy knees, but a heartfelt documentary reveals they’re not going gently into pop’s good night
Crufts 2015: Should foreign dogs be allowed to compete?

Crufts 2015

Should foreign dogs be allowed to compete?
10 best projectors

How to make your home cinema more cinematic: 10 best projectors

Want to recreate the big-screen experience in your sitting room? IndyBest sizes up gadgets to form your film-watching
Manchester City 1 Barcelona 2 player ratings: Luis Suarez? Lionel Messi? Joe Hart? Who was the star man?

Manchester City vs Barcelona player ratings

Luis Suarez? Lionel Messi? Joe Hart? Who was the star man at the Etihad?
Arsenal vs Monaco: Monaco - the making of Gunners' manager Arsene Wenger

Monaco: the making of Wenger

Jack Pitt-Brooke speaks to former players and learns the Frenchman’s man-management has always been one of his best skills
Cricket World Cup 2015: Chris Gayle - the West Indies' enigma lives up to his reputation

Chris Gayle: The West Indies' enigma

Some said the game's eternal rebel was washed up. As ever, he proved he writes the scripts by producing a blistering World Cup innings
In Ukraine a dark world of hybrid warfare and murky loyalties prevails

In Ukraine a dark world of hybrid warfare

This war in the shadows has been going on since the fall of Mr Yanukovych
'Birdman' and 'Bullets Over Broadway': Homage or plagiarism?

Homage or plagiarism?

'Birdman' shares much DNA with Woody Allen's 'Bullets Over Broadway'
Broadchurch ends as damp squib not even David Tennant can revive

A damp squib not even David Tennant can revive

Broadchurch, Series 2 finale, review
A Koi carp breeding pond, wall-mounted iPads and a bathroom with a 'wellness' shower: inside the mansion of Germany's 'Bishop of Bling'

Inside the mansion of Germany's 'Bishop of Bling'

A Koi carp breeding pond, wall-mounted iPads and a bathroom with a 'wellness' shower