THE FORMER chief executive of collapsed spread-betting firm Worldspreads is the biggest shareholder in a recently established high-end bookmaking business based in Dublin.

Conor Foley resigned as chief executive of Worldspreads “to pursue other interests” last week, shortly before it emerged that the Dublin- and London-listed company had a £13 million (€15.6 million) shortfall in its funds.

Both the Worldspreads board and Mr Foley stated last week that his departure was not connected with the company’s financial problems, which were only discovered after he resigned.

Mr Foley holds an 80 per cent stake in a new business, the Sporting Circle, set up specifically to target high-rolling sports punters.

Company documents show that he holds the entire issued share capital of ISH Hedging and Trading, which in turn owns 80 per cent of the Sporting Circle. Conall McSorley, Worldspreads former business development manager, holds the other 20 per cent.

The Sporting Circle began trading just under a year ago. It operates as a members club which offers both deposit and credit sports betting to clients, from whom it pledges to take substantial bets.

According to its website, Mr McSorley founded the business and it is backed by substantial business figures from Dublin and London. London-based businessman Michael Fitzsimons is a director of both ISH Hedging and Trading and the Sporting Circle Ltd.

Worldspreads is now in the charge of joint special administrators Jane Moriarty and Samantha Bewick of KPMG, who were appointed by Britain’s Financial Services Authority this week.

Their immediate focus will be to retrieve client funds and ensure that customers are repaid. They will also examine directors’ conduct and the circumstances of the collapse. Initial soundings of the business indicate that it only partially hedged its risks.

Major questions to be answered after collapse at Worldspreads: Business This Week: page 5