A Cayman bank which is already under investigation by the City of London police, the UK's main anti-fraud force, has been sued by 318 investors who allege that it facilitated a Ponzi scheme that received £50 million of their money.

The writ was issued at the Grand Court of the Cayman Islands on 11th July. Don Seymour, the founder of DMS, has denied everything and is preparing to defend his bank's honour tooth and nail.

The investors claim that they were originally told that their money was going into foreign currency trades arranged by the firm of Capital World Markets (CWM) Ltd, registered in the British Virgin Islands. CWM is also the subject of the writ. The investors claim that £50 million of their money went into the accounts of DMS Bank and are no longer traceable, with only £1.2 million remaining. The scam was allegedly facilitated by Jazeb Jones, a former DMS employee whom the bank sued last year for orchestrating an 'inappropriate' business relationship with two clients in exchange for gifts.

Further details will be revealed when the writ of summons in Nicola Locke et al v DMS Bank & Trust Ltd is made public.