The tycoon who set up the Airmiles and Nectar loyalty schemes is suing Coutts for £8m over claims it mis-sold him bonds issued by AIG.
Sir Keith Mills will this week sue the Queen's banker for several million pounds over claims he was not told AIG bonds he was advised to invest in were backed by risky assets including sub-prime UK mortgages, reports the Sunday Times.
The paper understands Mills has claimed at least £8m in damages, with further claims for lost interest.
The action follows a two-year campaign he has waged against the RBS subsidiary after he went to the bank in 2007 for advice on how to invest money earned from the sale of Nectar. Mills invested £65m into funds investing in AIG Premier bonds and another £8m from a family trust.
Following the US government's controversial rescue of AIG in 2008, Mills asked to cash in the bond but found it had been "frozen" and subsequently received only half of his investment with the remainder put in a "recovery" fund which cannot be accessed until 2012.
Coutts says it advised, correctly, the bonds were low-risk and not risk-free.
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