A financial services venture that was led by co-owner of Cardiff Rugby Club Neal Griffith went into liquidation in 2021 owing creditors £37m, WalesOnline can report. Mr Griffith is the former chief executive and shareholder of financial services venture, Optima Worldwide Group (OWG). The liquidation process for that company is ongoing. Mr Griffith, along with Welsh entrepreneur Phil Kempe, in January 2024 acquired the rugby club via takeover vehicle Helford Capital - with Cardiff Athletic Club (CAC) agreeing to a reduced and small minority interest. CAC owns the freehold of Cardiff Arms Park where Cardiff Rugby play under a tenancy agreement. Both Mr Kempe and Mr Griffith effectively took on a benefactor commitment to any losses incurred by the club which had been agreed before his death by Peter Thomas. That was agreed as part of the current funding agreement between the Welsh regions and the governing body the Welsh Rugby Union (WRU). A new deal between the WRU and the regions has yet to be signed off. OWG had two main operating subsidiaries in Strand Capital and Brandon Hill. Sign up to Inside Welsh rugby on Substack to get exclusive news stories and insight from behind the scenes in Welsh rugby OWG entered compulsory liquidation in 2021.There is no suggestion of any wrongdoing on the part of Mr Griffith, OWG or its subsidiary businesses, Fit and proper person and financial tests on the directors of Helford were undertaken on behalf of Cardiff Rugby by the WRU, via a professional advisory firm. Both passed as part of the due diligence that led to the takeover of the club. Cardiff Rugby were asked if they were aware of the liquidation of OWG prior to the takeover deal. Mr Neal, via the club, was given an opportunity to respond. Cardiff Rugby were also asked to comment. They had not responded at the time of publication. Phil Kempe had no involvement with OWG or any of its subsidiaries. It is not uncommon for serial entrepreneurs to see the liquidation of some of their business interests. The most recent progress report on OWG, from joint liquidators Kristina Kicks and David Standish of restructuring firm Interpath, for the year to the end of January, 2025, says: “We have received unsecured creditor claims from 59 creditors amounting to £37,592,756. "However, we understand there may be a duplication of certain claims. We are not yet in a position to estimate the likelihood, timing and quantum to unsecured creditors. The joint liquidators are not yet in a position to estimate the likelihood, timing and quantum of a dividend to unsecured creditors.” The liquidators also confirmed they have suspended efforts on behalf of creditors in realising a return from a 11% stake OWG held in a company called Arva Greentech AG that was held via a wholly-owned subsidiary, OWG Investments. OWGI was dissolved without notice to the joint liquidators on 30 November 2021. On the position of Arva Greentech the liquidators said: “During the period (12 month), it became apparent that there were previously undisclosed creditors in OWGI’s estate that would have made continuing with the restoration uneconomical for the company’s creditors as creditor balance outweighed the potential realisation from the Arva shares. As such, this process has been suspended.” Creditors of OWG include the Financial Services Compensation Scheme, James Hay Partnership, London & Colonial Services and Strand Capital. Administration process for OWG subsidiary also ongoing OWG subsidiary business and discretionary fund manager Strand Capital entered into special administration in 2018. The latest six-monthly joint special administrators’ progress report from business recovery firm Evelyn Partners, was published last November. It shows Strand had invested client monies in a number of OWG bond raises. OWG’s last series D bond on the Nasdaq North exchange secured around £10m from investors. Evelyn Partners said the bonds have been determined as “non returnable.” Strand’s bonds were backed by a large number of personal investors who had transferred their final salary (defined benefit) pension pots into self-investment personal pensions (SIPPs). It had around 3,000 clients. An upheld complaint to the Financial Ombudsman Service considered the case of a Mr H (real name withheld) against Intelligent Money. It concluded it should not have accepted instruction from his financial adviser (Grosvenor Butterworth – which has since been liquidated) to transfer his defined benefit pension, then worth around £98,000, into a SIPP. Intelligent Money passed his pension to Strand which invested into its holding company’s series D bond which carried an interest rate of 8%. OWG’s previous A and B bond series were unlisted while series C was previously listed on the GXG Markets until its closure in August, 2015. Ombudsman Sarah Wise of the Financial Ombudsman Service that as the bonds were unsecured, OWG was dependent upon its subsidiary companies and investee companies performing in order for it to be able to fund the interest repayments during the bonds’ fixed term and repay the capital amount on redemption. While Mr H received compensation from the Financial Services Compensation Scheme (which has a maximum of £50,000) Intelligent Money - itself a creditor to OWG - was ordered to pay Mr H up to £160,000 in compensation. On the relationship between OWG and its wholly-owned subsidiary Strand, Ms Wise concluded: “The investment in OWG bonds amounted to a direct investment in Strand’s parent company. This was a clear conflict of interest, and I think Intelligent Money should’ve had genuine concern over whether Strand could act independently in customers’ best interests, given the discretionary mandate it had to invest customers’ funds. The only investment Strand made on behalf of customers until May 2016 was in OWG bonds. So, I think this concern could’ve been validated, had Intelligent Money made any enquiries with Strand at the beginning of its relationship about the types of investments it would typically make for clients.” In 2016 OWG was admitted to the Copenhagen-based Nasdaq First North exchange platform. However, in a surveillance report on the performance of the exchange for 2018, it confirmed OWG’s shares and bonds were removed - the only such exit in that calendar year. The report states: "In 2018 only one company de-listed from First North. Nasdaq Copenhagen’s disciplinary committee decided to remove two instruments (share and two bond series) issued by Optima Worldwide Group plc from trading in accordance with Nasdaq First North rulebook and First Bond Market Rulebook rule 7.2.1. It added: “It was the view of the exchange that the company had seriously violated several of the fundamental rules of the exchange by not disclosing the annual and half year report. Additionally, the company breached the rules by not paying the listing fee, and for late disclosure of change of management. The case was submitted to the Nasdaq Copenhagen disciplinary committee, which decided to remove the company’s shares and bonds from trading the following day. It was further decided to suspend trading of the shares.”