Firm's fears of legal action over looted Abacha cash at end

Watford-based firm Matthew Arnold & Baldwin no longer faces legal action arising out of the lengthy efforts to restore up to $3 billion of Nigerian government money looted by former dictator Sani Abacha.

The case ended in an out-of-court settlement last week after the Nigerian government, advised by City firm DJ Freeman, accepted more than$1 billion (695 million).Matthew Arnold was among one of 100 institutions - including many in the City - which received demands for financial information last October (see [2001] Gazette, 4 October, 3, and 25 October, 3).The firm acted for a man alleged to be a front-man for the Abacha family as well as a member of the Abacha family who went by a different name.

Between them, they bought three leases of London properties through the firm between 1997 to 1998.The firm later received an unexpected 36,000 payment into its client account from Standard Chartered Bank, following instructions the bank received.

It reported the matter to the National Criminal Intelligence Service.Matthew Arnold had no comment following last week's settlement.Jeremy Fleming