A pastor at the Living Hope church has been forced to resign as a director.
Rousseau Moss has given an undertaking to the Financial Services Authority not to be a director, secretary or registered agent of any company for five years after admitting being ‘incompetent, negligent and irresponsible’ in connection with his role in the collapsed Louis Group (Isle of Man) Ltd.
Six other directors of the Louis Group face disqualification hearings in the high court in Douglas at the end of this month. But Mr Moss, a pastor at the Living Hope Church in Port St Mary since January 2012 and a director since September 2013, has given a voluntary undertaking of disqualification which has been accepted by the FSA.
The 38-year-old South African, of Fairway Drive in Port Erin, accepted the findings of the FSA on his actions as a director of five companies linked to Louis Group (IoM) but insisted he had acted in good faith.
But in his disqualification undertaking, he states: ‘It is now apparent, and I accept this opinion after reading the facts, that I have been incompetent and/or negligent and/or irresponsible in exercising proper control of the affairs of these companies.’
Mr Moss’s unfit conduct relates to his approval of the drawdown on loans knowing they were to be used to prop up unrelated companies that were ailing financially. He also failed to exercise proper financial control, caused or allowed mismanagement of funds and failed to keep adequate accounting records or comply with anti-money laundering rules.
In 2014, a liquidators’ report concluded there was a ‘taint of illegality’ across the vast majority of the business carried out by the Louis Group in the Isle of Man. The collapsed group had been wound up by the high court the previous year, unable to pay its multi-million pounds debts.
The FSA began high court disqualification proceedings against seven directors in June, including Mr Moss.
The other six – Louis Group CEO Dr Alan Louis, Lynn Keig, John McCauley, Dirk Frederik Mudge, Lukas Nakos (a team leader at the Living Hope church in Douglas) and Andrew Mark Rouse – now face an initial hearing in the disqualification proceedings in the high court on January 31.
Liquidators of Louis Group IoM identified many areas of concern including a substantial loss of investor capital running into tens of millions of pounds with almost every company in the island being insolvent.
They concluded there was highly improper activity with investor funds, a culture of fear and intimidation with Dr Louis having ultimate and absolute control, misleading promises of high returns and low risk, unlicensed deposit taking, inter-mingled funds, poor accounting records and evidence of substantial sums paid to Dr Louis and his trusts from money sourced from investors and accounted for as debts which he denies liability for.
Dr Louis denies wrongdoing and claimed he has been unjustly persecuted.
Mr Moss states in his disqualification undertaking that he had trusted in the track record of the Louis family’s three generations of property investment success. He said: ‘I was part of a culture built on secrecy. Various critical pieces of information would be withheld and only became accessible after the fact.
‘Both my family and I have suffered personal financial loss as a result of our trust in LGIOM. When it became increasingly clear there were various issues coming to light, Lynn Keig and I endeavoured to bring these to the attention of the FSA during 2011.’
He said he had been out of financial and investment services since his resignation from the Louis Group in December 2011 and had no intention of returning to the industry. ‘I am not and have not been and will not be in a position where I am able to influence decision on the finance of the general public,’ he added.
In October we reported how the Living Hope congregation had made donations totalling £66,000 to help lead pastor Jonathan Stanfield buy a five-bedroom home and base in Douglas.
Mr Moss subsequently gave a sermon on ‘integrity’.
He told the Port St Mary congregation: ‘People are calling into question the integrity of the body of Christ and the leaders within the church. We can’t let the world around us determine our ethics and morality.’