This seems an appropriate time to debunk a couple of myths that are commonly believed about the victims of unregulated investment schemes which collapse and lose their investors' money. Not least by the investors about themselves.
Myth #1: The victims of collapsed investment schemes were greedy
A company calling itself Global Market Trend claims to provide "Swiss Government Backed Fixed Income Bonds" paying "5-10% per annum".
for a review of Global Market Trend's investments.
Carlauren Group is not having an easy time lately. Added to its failure to raise more than a few thousand from its C-Coin care home cryptocurrency, it was temporarily unable to pay staff at the care home from which it was busy evicting elderly residents, and has also had to put plans to build an Ibiza-style beach club on the Isle of Wight on hold.
Liberty House Capital is a reboot of a 2018 scam which called itself Hanover Merchant Capital. The supposed investment involves promising returns of 30% from bottled water from Australia or New Zealand.
Hanover Merchant Capital was reviewed here in June 2018 and did a runner with investors’ money a few months later. Liquidators were appointed to wind up its UK corporate entity in March 2019. No reports have been filed by the liquidators since then and no details are available as to how much it took from investors.
Liberty House Capital was incorporated in June 2018 and was reviewed here in May after investors began reporting they had been approached with an identical spiel to Hanover.
Liberty House Capital has now approached me via an intermediary asking me to remove the article. Rather than disputing any of the facts in the review, they offered me money to remove it. After I strung them along for a bit, they told me they were prepared to offer €500 – €750 as a lump sum for its removal.
Exmount Commercial Developments (a trading name of Exmount Construction Limited) offered 3 and 5 year bonds paying 9.12% and 10.35% per year. I reviewed the bonds in April 2018.
According to both investors and Jade State Wealth, Exmount Construction has stopped paying interest and is failing to respond to phone calls.
Jade State Wealth had been hired by Exmount to act as Security Trustee. However, according to Jade State, Exmount failed to comply with anti-money-laundering and liquidity requirements and consequently Jade State withdrew its services in February 2018.
According to Jade State, Exmount has continued to solicit investment regardless while still telling people that the investment was overseen by Jade State. Some of them have fruitlessly contacted Jade State asking where their money is.
Hudspiths was an unregulated forex scheme that launched in 2015 and promised returns of 5% per month, along with 2% per month to be paid to its introducers.
The scheme collapsed late last year, and in early June the company applied for a voluntary liquidation. 30 investors took the company to the High Court in an attempt to force a compulsory liquidation instead. A barrister for the investors accused Hudspiths of being a Ponzi scheme. Director Karl Lubienicki told City AM the Ponzi accusation was "not true".
On Thursday 4th July the Financial Conduct Authority and Smith & Williamson announced that Park First had been put into administration.
Smith & Williamson appear to be rapidly becoming the go-to liquidator for major collapsed unregulated investment schemes. Smith & Williamson are of course also managing the London Capital & Finance administration, with two of their LCF team - Finbarr O'Connell and Adam Stephens - also appointed to Park First.