SG HAMBROS is being sued for more than £1m. by the estate of a former client, who was defrauded by disgraced banker Paul Ludden’s money laundering.

Ludden, an SG Hambros employee accused of lavishing cars and jewellery on exotic dancers, was sentenced to five years in prison in July after he admitted money laundering to the Royal Court.

The charge was an alternative to 11 counts of theft, which he denied.

It was alleged that he stole £650,000 between 2000 and 2007 from his client’s account, H. J. & C. Palmer, which was in the name of the late Harry Palmer and his son, Colin.

Civil proceedings are now being brought as Colin Palmer, a representative of his father’s estate, looks to recover the money Ludden misappropriated.