Barclays (BCS) has alleged that capital was fraudulently routed across the corporate network of Market Financial Solutions on a significant scale, Bloomberg News reported Thursday, citing High Court documents.

Trident Funding, a bridge loan vehicle backed by Banco Santander (SAN), allegedly dispatched 235 million British pounds ($317 million) to Market Financial Solutions International, an entity owned by founder Paresh Raja, the media outlet reported.

The Santander-supported vehicle also took in 92.9 million pounds from another Raja-owned enterprise, despite neither firm being bound by Trident's master agreement, according to the news outlet.

The claims surfaced during a Thursday hearing where insolvency administrators secured approval to unfreeze 21 million pounds from a Barclays account to manage Trident's operating expenses, the report added.

Creditors are actively pursuing a lawsuit against Raja to recover 1.3 billion pounds in missing assets following the mortgage lender's collapse earlier this year, Bloomberg reported.

Barclays, Banco Santander, and Market Financial Solutions did not immediately respond to MT Newswires' requests for comment.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

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