LONDON — Lex Greensill has received a nine-year ban from directing a U.K. company after admitting to breaching his legal duties as a director. The Insolvency Service stated this breach caused a $440 million loss for Credit Suisse.
Greensill signed a disqualification undertaking, which ended legal proceedings that were scheduled for a June trial. The agency initially sought a disqualification period of up to 15 years. A court rejected Greensill's attempt to challenge the disqualification proceedings in March.
The circumstances surrounding the disqualification involved lending to Katerra, a U.S. construction company. Greensill directed his companies to enter transactions that removed legal protections from Katerra loan notes without obtaining required written consents. Credit Suisse-controlled funds had purchased Katerra loans that were backed by insurance.
"Director disqualifications exist to protect the public from those who have demonstrated they are unfit to run companies. A nine-year ban is a significant period above the average for director disqualifications and reflects the serious nature of Lex Greensills conduct," Duncan Beach, chief executive of the Insolvency Service, said.
Greensill's representatives stated that the matter concluded with no finding that he acted dishonestly or in bad faith. He is also a defendant in a separate civil lawsuit filed by administrators for Greensill Capital (U.K.).
Greensill is a 49-year-old Australian who formerly worked as a sugar farmer. Former U.K. Prime Minister David Cameron previously worked for Greensill Capital. The U.K. Treasury select committee reported in July 2021 that Cameron lobbied for the firm to join a government pandemic support scheme in 2020. Additionally, Softbank founder Masayoshi Son's investment firm provided backing for the Greensill group.