It could have been Baghdad as normally law-abiding citizens went on a rampage of looting. But the mayhem was erupting across Britain last week, sparked by a text message warning employees they would not be paid. And the finger of blame was pointing at Mark Langford.

By one of those poetic ironies, Langford is the standard bearer of the new compensation culture as chairman of the Accident Group (TAG), the “no-win, no-fee” personal claims company. And when 2,500 of the firm’s workers were summarily sacked on Friday, many decided to take their compensation by direct action.

Hundreds of employees laid siege to the group’s premises in Manchester, Birmingham, Liverpool and other regional offices, stripping out computer and office equipment in lieu of their salaries for last month, which had been cancelled. Some were even reported to have sold company cars and pocketed the cash.

Langford, who founded TAG in 1992 with his wife Debbie, was in deep denial, claiming to be “absolutely devastated” by events that had been beyond his control. Soon the flamboyant 39-year-old businessman was in deep purdah, saying nothing.

The messages that beeped onto the workers’ company mobile phones initially asked them to “check your e-mail for salary news.” A second message informed them: “Unfortunately salaries not paid — please do not contact office — full details to follow later today.” The messages came from insolvency practitioners at the accountants Price Waterhouse Coopers, administrators of Amulet Group, the Luxembourg-controlled parent of TAG.

The episode resonates with bad vibes and the spirit of the age. It brings to mind the notorious fax sent by the pop star Phil Collins informing his then wife their marriage was over. Robin Cook’s days as foreign secretary were numbered from the moment Alastair Campbell gave him a deadline to choose between his mistress and his wife.

When workers demanded that Langford repay their wages from his own fortune, he claimed it was gone. Asked how much he was worth, he replied: “F***-all now,” adding, “I am the great guy who set it up but it has all gone a bit pear-shaped.”

He claimed his hands were tied. “If I could have sorted everything out I would have. I care passionately about my people.”

Langford and his wife have amassed personal wealth estimated at £40m, down from £75m last year, placing him at 832nd in this year’s Sunday Times Rich List. Our poll published in April named Amulet Group, the parent company, as the fifth-fastest profit-growth company in the UK.

Langford’s success is reflected in his lifestyle. He owns a luxurious regency manor house in a 25-acre estate with a lake and indoor pool at North Rode, Cheshire, where he lives with his wife and two daughters. His five-acre garden is the setting for lavish summer parties. He also has a villa in Spain and a fleet of luxury cars including two Ferraris, a Bentley and a Porsche.

He was at the wheel of his red Ferrari 355 F1 Spider three years ago when he hit a 73-year-old war veteran who was crossing the road. The impact that killed Bill Thornley hurled him 15ft into the air and ripped his clothes off, a jury was told at Manchester crown court. However, they cleared Langford of causing death by dangerous driving and convicted him of the lesser offence of careless driving. He was fined £1,000 but retained his driving licence.

Langford, who criticised the dead man in court for trying to cross a busy, wet road in twilight, insisted he was abiding by the 40mph limit, contradicting witnesses who claimed he was doing 55mph. Some jury members, unaware that he had a conviction for drink-driving, covered their faces with their hands on learning he had served a 22-month ban and recovered his licence only six months before the fatal crash.

Now Britain’s largest “ambulance chaser” has crashed again. But Langford generated good news, too, even if it may turn out to be less lustrous than it seemed. Last Christmas he basked in the praise of former US president Bill Clinton and the Duke of York at a lavish ball where he pledged £6m to the NSPCC.