FINANCIAL FRAUDSTER NEWS EXCLUSIVE: State of Libya's Property Fraud Exposed in UK High Court – Charging Order Over London Home Under Threat After Shocking Admission
GEORGETOWN, CAYMAN ISLANDS – 24 June 2025 – Financial Fraudster News Investigations, with exclusive access to critical court documents in the Cayman Islands and the UK, can today reveal a bombshell development in the High Court, Commercial Court (KBD) that exposes the State of Libya (SoL) as having deliberately perpetrated a fraud on the court by falsely claiming ownership of a prime London property. This stunning admission by the State of Libya itself is now set to unravel a Charging Order previously secured by General Dynamics United Kingdom Limited ("GDUK") over the contested asset.
At the heart of this legal earthquake is 7 Winnington Close, London, N2 0UA, a property registered at HM Land Registry under title number NGL256694. Despite its repeated assertions to the UK courts, including in significant Commercial Court proceedings, the State of Libya has now formally confessed that it never legitimately owned this property. Its true beneficial owner, since its acquisition on 10th May 2009, is Capitana Seas 2008 Trust, a Wyoming-based entity.
The Fraud Uncovered: State of Libya's Own Admission
The truth emerged through a Consent Order issued by District Judge Britlin in the Civil National Business Centre on 28 November 2024 (Case Number: K0QZ48AX). This legally binding order, resulting from direct proceedings between Capitana Seas 2008 Trust and the State of Libya, serves as the State's unequivocal admission of its prior deception.
The Consent Order meticulously records that "material evidence provided by the Defendant [The State of Libya] on 1st December 2011 in claim no 2011/1457 which were, and which the Defendant knew were or might be untrue or misleading, namely the funds used to purchase 7 Winnington Close... was purchased with funds derived from the Defendant." Our investigation confirms this refers directly to the false and misleading statements made by one Mohamed Shaban, who had alleged in Commercial Court claim 2011/1457 that approximately £10 million from the State of Libya was used to purchase the property.
"This constitutes a direct and formal admission by the State of Libya that its previous representations regarding the source of funds for the Property's purchase were fraudulent and misleading," stated Yang Li, General Counsel of Capitana Seas 2008 Trust, in a witness statement filed with the High Court. "The Consent Order unequivocally vests title of 7 Winnington Close... to the Claimant who has a beneficial interest pursuant to the purchase... with funds derived in fact from the Claimant on 10th May 2009. This conclusively establishes the Trust's beneficial ownership from May 2009, prior to any claims by GDUK."
Charging Order Vitiated by Fraud
The implications for General Dynamics United Kingdom Limited are severe. GDUK had sought and obtained an Interim Charging Order on 24 February 2023, and subsequently pursued a Final Charging Order, over 7 Winnington Close. This occurred in the context of their own dispute with the State of Libya (Commercial Court (KBD), Judgment by HH Judge Pelling KC dated 22 March 2024), where the Property was repeatedly referred to as being "owned by" the State of Libya.
"The fundamental premise upon which the Commercial Court considered GDUK's application and SoL's defence of sovereign immunity—namely, that the State of Libya 'owned' the Property—was not merely incorrect, but fundamentally false and the result of a deliberate fraudulent misrepresentation by the State of Libya itself," Yang Li's statement asserts. "The State of Libya knowingly and wilfully allowed the Commercial Court to proceed on this false premise, leading to an order being made that effectively charged property it did not own. This constitutes a direct and egregious fraud on the Court."
The principle that "fraud unravels all" (ex turpi causa non oritur actio) is a cornerstone of English law. Capitana Seas 2008 Trust contends that a charging order obtained over an asset that the judgment debtor (the State of Libya) now, by its own consent, admits it never beneficially owned, is fundamentally vitiated and cannot stand. The Property was never legitimately part of the State of Libya's leviable assets.
Capitana Seas Acts to Set Aside Charging Order
Capitana Seas 2008 Trust has now formally notified GDUK and its solicitors, Alston & Bird (City) LLP, of its unequivocal intention to apply to the High Court, Commercial Court, to set aside the Interim Charging Order (dated 24 February 2023) and any subsequent Final Charging Order over 7 Winnington Close.
"The Trust will seek all appropriate relief, including but not limited to the immediate discharge of the Charging Order and costs," confirmed Yang Li.
This unfolding scandal highlights significant risks when dealing with sovereign entities and underscores the critical importance of rigorous due diligence, even when information is presented in formal court proceedings. Financial Fraudster News will continue to follow this case closely as Capitana Seas 2008 Trust moves to reclaim its property and expose the full extent of the State of Libya's alleged deception within the UK legal system.
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Financial Fraudster News Investigations
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