Marcello Developments – Unregulated bonds paying 8-10% per year over 5 years

Marcello Developments Limited

Marcello Developments offers 5 year investment bonds paying 8% in years 1 and 2, 9% in years 3 and 4 and 10% in year 5. The bonds can be redeemed in full after one year.

Who are Marcello Developments?

Bryan Gauson
Bryan Gauson, Marcello Developments co-owner

The company was incorporated in February 2015 and has been issuing loan notes since June 2015. Marcello Developments is a subsidiary of Marcello Group, which is 50/50 owned by the directors, Keith Wotherspoon and Bryan Gauson.

Both Wotherspoon and Gauson were previously involved in Ixe Group, the controversial agribusiness and commodities group. Wotherspoon was previously a director of Ixe Agro Limited, although that subsidiary has now been dissolved. Bryan Gauson describes himself as an employee of Ixe Agro on his blog.

keith-wotherspoon
Keith Wotherspoon, Marcello Developments co-owner

Marcello Developments had net assets of £5 million according to its last accounts (February 2017), after allowing £3.6 million for the liabilities represented by the 5-year bonds. These accounts were not audited, due to Marcello Developments being exempt under the small companies regime. According to the accounts Marcello raised £900k from its 5-year bonds in 2015, £2.4m in 2016 and £311k in 2017.

How safe is the investment?

These investments are unregulated corporate loans and if Marcello Developments defaults you risk losing up to 100% of your money.

The purpose of the bonds is to allow Marcello Developments to invest in the prime London property market, including bridging and mezzanine finance, buy-to-let residential and commercial property, and off-plan property acquisitions.

If Marcello fails to make enough income from its property investments, or for any other reason Marcello runs out of money to service these bonds, there is a risk that they may default on payments of interest and capital to investors.

Early redemption option

The bonds are described as being fully redeemable after one year. However, the ability of investors to exit after one year will depend on whether Marcello Developments has sufficient liquid funds to repay them.

Asset-backed security

Marcello Developments’ loans are backed by the assets of Marcello developments, with a legal charge held by a Security Trustee (Jade State Wealth).

Investors should not assume that because their loans are secured on these assets, they are guaranteed to get at least some of their money back through sale of the collateral if the issuer defaults. Investors in asset-backed loans have been known to lose 100% of their money (e.g. Providence Bonds and Secured Energy Bonds) when it turned out that the collateral was insufficient to pay investors after paying the insolvency administrator (who always stands first in the queue).

We are not in any sense implying that the same will happen to investors in Marcello Developments, only illustrating the risk that is inherent in unregulated corporate loan notes even when they are asset-backed.

If investors plan to rely on this security, it is essential that they undertake professional due diligence to ensure that in the event of a default, these securities are valuable and liquid enough to raise sufficient money to compensate all investors, as well as any other creditors that Marcello Developments has borrowed money from.

 

Should I invest with Marcello Developments?

This blog does not give financial advice. The following are statements of publicly available facts or widely accepted investment principles, not a personalised recommendation. Investors should consult a regulated independent financial adviser if they are in any doubt.

As with any unregulated corporate bond, this investment is only suitable for sophisticated and/or high net worth investors who have a substantial existing portfolio and are prepared to risk 100% loss of their money.

Any investment offering up to 10% per annum yields should be considered very high risk. As an individual security with a risk of total and permanent loss, Marcello Development’s bonds are higher risk than a mainstream diversified stockmarket fund.

This particular bond is described as asset-backed. Before relying on the security backing the bond, investors should undertake professional due diligence to ensure that in the event of default, the security could be easily sold and would raise enough money to compensate all the investors, after the adminstrator deducts their fees and any higher-ranking borrowers are paid.

Before investing investors should ask themselves:

  • How would I feel if the investment defaulted, the sale of the security failed to raise enough money to compensate all investors, and I lost 100% of my money?
  • Do I have a sufficiently large portfolio that the loss of 100% of my investment would not damage me financially?
  • Have I conducted due diligence to ensure the asset-backed security can be relied on?

If you are looking for a “guaranteed” investment, you should not invest in unregulated products with a risk of 100% capital loss.

14 thoughts on “Marcello Developments – Unregulated bonds paying 8-10% per year over 5 years

  1. Have received no interest and struggling to get my money back, even though Marcello cancelled bond I was going to invest in. They have had my money since October 31, 2017. This Company was recommended by my broker, I have never heard of them.

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  2. Do not invest in this company, they are holding my money for a bond they themselves cancelled because “they didn’t need the money” can you believe that. Sixteen months down the line and I still have not received anything from them and not even any communication. Have nothing to do with them, they are out and out frauds and have probably been living the high life on other people’s hard earned money. Lynne Garner

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  3. Have contacted Marcello directly, my broker,, (Direct Property Investments) do nothing for you once they have your money.
    I threatened to report Marcello to the Financial Ombudsman, Brian Gausen (absolute lying bastard ) sent me a confidentiality agreement saying they would pay me out individually. Complete lies, strung me along for two weeks and nothing.
    I would like to turn up at the Marcello offices and stage a sit in and have the press there, anyone interested?
    Get in touch colin1079@gmail.com
    The Trustee, Graham Arnott is a complete waste of space he wright’s letters to Marcello, that’s why nothing happens for weeks on end. I would not be surprised if he is working for them.
    I have reported them to every financial organisation I can find, but the problem is they are not regulated so it needs to be a legal action, which Arnott will get around to in about another year the way he operates.
    If anyone wants to vent there feelings directly to the lying cheating son of a bitch Brian Gausen, which I do often his email is available on the Marcello website along with a picture of the thieving money grabbing cretin.
    Colin Munday.

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  4. It seems I have upset Direct Property Investments, there are, so they tell me, one or two inaccuracies in my comments on this blog.
    First I referred to them as Brokers, apparently they are not Brokers but Introducers, they introduce the investor and the investment company, and then they broker the deal, so make up your own mind.
    I also said they do nothing for you once they have your money, obviously they do not have your money or handle it, this was a figure of speech. The point I made was concerning the lack of after sales or customer service which in my experience, was, and still is, a very long way from what I expected.
    The real villains of the piece are Gausen and Wotherspoon who continue to hang on to investor’s money and have no intention of releasing it.
    Colin Munday

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  5. Gausen and Wotherspoon still hanging onto investors money, do not invest with these crooks, they are thieves who swindle investors out if there money.
    The Trustee of the money that Brian Gausen and Keith Wotherspoon stole, Graham Arnott seems to have gone to ground as well, no word from him, no change there.
    International Investments are also silent, no change there either, but then they did not like my last comments so that’s probably why, still it bears out what I have been saying concerning customer service !!!

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  6. So two days after my last comments the so called Trustee Graham Arnott miraculously/coincidentally reappears with an update from the crooks at Marcello who have our money.
    Marcello say they have had to source alternative arrangements and they mention transaction 4 plus new banking facilities in another jurisdiction.
    This is complete and utter B/S they put out the same excuse worded slightly differently 12 months ago, nothing has changed it’s more smoke and mirrors, the delay they say will be approximately three weeks. What will happen in reality is the three weeks will stretch to five or six weeks without any word from Marcello or Arnott and then there will be another excuse, its just more delaying tactics.
    The truth is the money is not available they have used it to shore up another crooked deal.
    So three weeks from there latest load of lies will take us to Friday the 13th of September when they say they will provide dates for payment.
    Brian Gausen and Keith Wotherspoon have no intention of keeping the promise made in the circular dated 23rd of August 2019.
    Anyone who considers investing with the Marcello group must not , they are not to be trusted, check with your broker they should be warning you off these crooks, the opinions of the various companies / brokers who arrange investments with Marcello would be interesting to hear.
    I’ve heard nothing yet from the company (Direct Property Investments) who arranged my investment.
    A Facebook blog is in the pipeline which will reach out to a vast number of people and hopefully ruffle a few more feathers.

    Colin Munday
    24th August 2919.

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  7. The latest payment details date has come and gone, just as I stated in my last comments.
    It’s just more lies from the dishonest thieves at Marcello.
    Everyone will have gone to ground again including the chocolate fire guard Graham Arnott who calls himself the Trustee, it just goes on and on.
    These crooks Brian Gausen and Keith Wotherspoon have no intention of paying back the money they took from investors under false pretences, they should be prevented from trading, do not touch anything with the game Marcello it is a SCAM.
    The next report from Arnott or the crooks at Marcello will be to explain the latest delay, no doubt it will be something to do with banking regulations that is an excuse they have now used three times over the last eighteen months.
    Colin Munday.

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  8. Absolute silence from Marcello after the latest lies they call promises did not materialise, also, surprise surprise, the so called Trustee Graham Arnott has also gone missing again.
    I would have thought the basic requirements of a Trustee would be regular contact with investors, even if there are not any new developments.
    Bryan Gausen and his sidekick Keith Wotherspoon will be laughing all the way to the bank, after scamming investors out of there money, these two unscrupulous, lying thieves need to realise the people they have stolen from are not going to sit back and do nothing.
    I, like all other unfortunate people who trusted these crooks wait now for the next round of rubbish to be posted by Arnott.
    The financial conduct authority have the names of these scumbags and are watching developments and just in case they miss anything I pass everything on anyway.
    It gets more obvious with every excuse and delay that comes from Marcello that it was a scam from the outset, I just hope that this blog warns anyone considering trusting this company and its directors with there hard earned money, to walk away, they are not to be trusted.

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  9. So extracts from an email have surfaced written by the serial escapologist Graham Arnott.
    This email explains in detail what is supposedly happening now.
    In truth it sounds complete and utter gibberish, if we have any financial experts in the support group their opinion would be good to hear. In my view it is more smoke and mirrors from the thieving crooks Bryan Gausen and Keith Wotherspoon at Marcello, Arnott is just doing whatever they tell him.
    It also begs the question, why has he not circulated this information to us investors, he obviously thinks it will be seen for what it is, just more lies from the unlawful, unscrupulous, thieving scumbags at Marcello.
    These lying individuals are playing games and legal action is the only way.

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