UK Probes Collapsed MFS as Backers Hunt for Missing Billions

Market Financial Solutions Ltd. faces an investigation by the UK financial regulator, marking the first publicly disclosed action by authorities into the mortgage lender that collapsed owing billions to Wall Street lenders.

MFS, controlled by Paresh Raja, was at the center of a sprawling group of companies that borrowed more than £2 billion ($2.7 billion) from backers including Barclays Plc and Apollo Global Management Inc.’s Atlas SP Partners. The London-based firm used the money to finance short-term real estate loans and collapsed Feb. 25 amid allegations of wrongdoing and fraud.