Magna Global (aka MIX1 and MIX2) – we review their unregulated bonds paying 11.7% – 12% a year

Magna Group (aka Magna Asset Management) is offering unregulated bonds paying interest over 12 months or 18 months as follows:

  • 12 months: Pays interest of 12% over the one-year term, rolled up and paid out at the end of the year. Issued by MIX2 Limited.
  • 18 months: Pays interest of 18% over an eighteen month term, rolled up and paid out at the end of the 18 months, which is equivalent to 11.7% annual interest on an Compound Annual Growth Rate basis. Issued by Magna Investments X Ltd, aka MIX1.

Investment in the 12 month MIX2 loans has a minimum investment of £30,000, while investment in the 18 month MIX1 loans has a minimum investment of £10,000.

The lower minimum investment is the only concrete reason I can think of for investing in the longer term loans, given that they pay the same rate of simple interest despite having a longer term (and therefore having higher liquidity and default risk).

While Magna Group’s literature has been approved by an FCA-authorised company (Equity for Growth (Securities) Limited), the investment itself is unregulated, being a loan note issued by a non-FCA-authorised company.

Who are Magna Group?

MIX2 Limited is wholly owned by CEO Chris Madelin, while MIX1 is owned 50/50 by Chris Madelin and Acquisitions Director Oliver Mason.

Magna Asset Management, which appears to be the central corporate entity of the Magna Group (which includes at least 20 UK registered companies), is owned in equal proportions by Madelin, Mason and Development Director Jonathan Beach.

directors
L to R: Chris Madelin, Oliver Mason and Jonathan Beach.

Magna Asset Management was incorporated in February 2015 and its last accounts, made up to 31 December 2017, show net assets of £1,790. This predominantly comprised £6.1 million of debtors (amounts owed to Magna Asset Management by other Magna companies) minus £6.1 million of creditors (predominantly loans from investors, as well as some amounts owed to other Magna companies). These accounts were unaudited due to Magna Asset Management’s small size, and did not include a profit and loss account.

The two bond issuing companies, MIX1 and MIX2, were incorporated in June and July 2018 respectively and are too young to have filed accounts.

How safe is the investment?

These are unregulated investments into a micro-cap property business and if Magna Group is unable to make sufficient returns from its property investments, or for any other reason runs out of money to service its bonds, it may default on payments of interest or capital.

Magna Group’s literature is commendably clear in this regard, making it clear from the cover page onwards that investors’ capital is at risk.

Asset backed loans

Investors have a charge over any property purchased by MIX1 / MIX2 or its subsidiaries and a floating charge over all the assets of MIX1 / MIX2 or its subsidiaries.

Investors should not assume that as the loan notes are to be backed by property, there is no risk of losing money.

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 there were not enough assets left 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 Magna Group, only illustrating the risk that is inherent in any loan note even when it is a secured loan.

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, the assets of MIX1 and MIX2 are valuable and liquid enough to raise sufficient money to compensate all investors.

Investors should note that they are investing in two newly formed companies, Magna Investments X Limited and/or MIX2 Limited, and the assets and property projects of the wider Magna Group are irrelevant as far as the charges over the assets of MIX1 and MIX2 are concerned.

According to a factsheet for the MIX1 investment (the 18 month bond), available to download from the Magna Group website, investors in MIX1 have a “share charge” over the shares in Magna Asset Management Limited held by Chris Madelin and Oliver Mason.

It is not clear whether this is the case for the MIX2 investment (the 12 month bond). There is no mention of a share charge in the MIX2 factsheet, but there is a passing mention of share charges in the MIX2 Information Memorandum under Risk Factors. However no specifics are provided anywhere else in the MIX2 document.

Investors will need to clear this up as part of their due diligence. In addition, bearing in mind that Magna Asset Management Limited has net assets of £1,790 according to its last published accounts, if they are planning to rely on the security offered by the charge over 66% of its share capital, they should undertake professional due diligence to verify that the assets of Magna Asset Management Limited would be valuable and liquid enough to compensate investors.

Should I invest in Magna Group?

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 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 yields of up to 12% a year should be considered very high risk. As an individual, illiquid security with a risk of total and permanent loss, Magna Group’s bonds are much higher risk than a mainstream diversified stockmarket fund.

Before investing investors should ask themselves:

  • How would I feel if the investment defaulted 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?

The investment may be suitable for high net worth and sophisticated investors who will already be well aware of all of the above risks, are looking to invest a small part of their assets in corporate lending, have done sufficient due diligence, and feel that the return on offer (12% over one year or 11.7%pa over 18 months) is sufficient for the risks involved in lending to a new startup company.

If you are looking for a “secure” investment, you should not invest in corporate loans with a risk of 100% loss.

84 thoughts on “Magna Global (aka MIX1 and MIX2) – we review their unregulated bonds paying 11.7% – 12% a year

  1. Compared to High street group HSG, how better or worse is MIXG? Can anyone with experience perhaps shed some light into this and provide advise?

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  2. Determining which of Magna Global and High Street Group is a better investment is well beyond the scope of this blog. As both are unlisted micro-cap firms, that is a job for a corporate finance professional specialising in due diligence, who has reviewed the financial position and cashflow forecasts of both.

    No idea what MIXG is. Feel free to send details via the Contact page. If it’s a loan to Magna Global under a new name, then the generic risk warnings and considerations in the review above still apply.

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  3. Magna has not paid me out on my payment due date of Friday 28th February. There has been no communication whatsoever, they do not answer their phones nor do they reply to emails. I have been told by other people they have also not been paid by Magna and are considering legal action. What concerns me as much as their failure to pay my money is their lack of communication and ignoring my calls, emails and messages. I am furious and should have listened to my gut not to invest in Magna or Chris Madelin. Begining to believe this is a legal scam or pyramid scheme.

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  4. I work for an investment bank and gave Magna’s information memorandum to a colleague involved in property acquisitions for over 40 years. His advice, “Don’t go near this with a barge pole, you will lose your money”.

    The very persuasive salesman was keen to tell me numerous time about a first charge on assets and assets held in security by a regulated trustee. However, included within the information memorandum is the following:

    The Company does not have any assets currently and therefore lenders have no existing
    security.
    The Company undertakes that it will not utilise
    payment of commissions to the brokers that promote this raise of the Company and its
    subsidiaries (if any) more than 39% of the Loan Notes subscription. Accordingly,
    of property assets held under charge b
    monies invested by way of the Loan Notes.

    If 39% of the money I’m investing goes on commissions to brokers? How on earth are they able to straight away lose 39% of the funds, and payback an additional 38% in interest to the investor??

    Not going anywhere near it.

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  5. Worrying to read the above feedback about Magna Global. They seemed like a professional outfit.

    Have any other lenders had any correspondence with Magna? Are they paying lenders / investors back?

    Liked by 1 person

  6. Where is Chris Madelin, Magna’s CEO? Weeks ago he promised an update to lenders but hasn’t sent one.

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  7. Have you received any correspondence from Chris Madelin yet Peter? I have been sent the following emails, he is no longer on LinkedIn.
    Dear Investor,

    We write to you as an investor in MIX2 Limited.

    When you invested in MIX2 Limited (the “Investment”) you were given a brochure called an information memorandum (“IM”) dated 31 August 2018 or 6 November 2018. We notified you by email at the beginning of November 2019 that our approval of the IM was withdrawn on 13 August 2019.

    We write to provide some specific details in respect of the investment promoter fees which have been paid in relation to the Investment. Please see below for further details.

    The Financial Conduct Authority (“FCA”) has introduced new rules which took effect from 1 January 2020 regarding, among other matters, the format and description within an IM of fees paid to promoters from the monies raised from investors. These new rules were introduced because the FCA was concerned about consumers being misled on fees, costs and charges deducted from their investment.

    Equity for Growth (Securities) Limited (EFGS) who initially approved the IM you received, have agreed with the FCA that, going forward, disclosure of these fees in line with the new rules will assist investors to have a proper understanding of the business they are invested in, and to empower them to make any future investment decisions with knowledge of all material facts.

    Accordingly, we wish to inform you:

    22% of your investment was paid upfront to the promoters of the investment. This means that this percentage of your investment was not used to generate returns.

    78% of the subscription monies have been applied to the underlying business described in the IM.

    In the event you have any questions about this letter, you can contact EFGS directly on clientservices@equityforgrowth.com or, of course, you may wish to seek your own independent advice.

    Yours sincerely,

    Chris Madelin, CEO

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  8. I have Magna loans. They have defaulted and given no info for months. CEO Chris has left the country. Director J Beach was let go in 2019 along with R Davensac, C Eyre, and only Oliver Mason left now.
    Their FCA security trustee may be regulated but that doesn’t mean a thing with regards these loans. The trustee won’t enforce the security – presumably because they didn’t administer any charges over actual property in the SPVs. Looks like the only thing of value could be Magna Asset Management.

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  9. So Chris Madelin has left the country, surely there must be an investigation into his/their conduct? Does anyone know how much they raised and over what period? I did some digging and the 22% commission he refers to in his letter was paid to Hunter Jones, run by Reece Mennie. Hunter Jones are also an FCA Appointed Representative, operating under Equity for Growth Securities, the very same company appointed as Security Trustee on the loan notes!

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  10. Hunter Jones have been trying hard to find out what is going on.
    Commissions may be high but that is common. If Magna went to market forecasting how much it had to raise it would have known what it would receive net, and still felt able to buy properties / buy options with that money. That is a side issue. Question is what has been done with the millions of cash raised in each of the SPVs?
    MIX Limited
    MIX 2 Limited
    MIX 3 Limited
    MIX G Limited?

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  11. I’ve known Chris Madelin for a very long time through previous dealings and, based on how he treats people and does business, have kept safe distance from him for years. I am relieved I didn’t go anywhere near his loan notes, and neither did a family member of mine even though she was approached.

    “Question is what has been done with the millions of cash raised in each of the SPVs?”

    Some of Mr Chris Madelin’s purchases:

    – a Lamborghini
    – designer watches
    – designer suits
    – designer home furnishings
    – £25,000 designer handbags (for his partner)
    – £3,000 designer pairs of shoes (for his partner)
    – luxury five star holidays abroad

    He made sure he took astronomical amounts from Magna for himself.

    He spends more money on himself in a day than Warren Buffet does on himself in a year.

    I’m sorry you guys have been taken for a ride but I’m afraid you financed his extremely grandiose “Wolf of Wall Street”-like lifestyle.

    The reason both he and his accomplice Oliver Mason have suddenly deleted their Linkedin profiles etc. and he has scarpered abroad is he knows the game is up in terms of Magna. He’s now focused on making money from a completely different business.

    Don’t expect Equity for Growth Securities or anyone else that was part of these “schemes” I’ll call them out of politeness that took tens of millions of pounds from investors to do anything.

    Equity for Growth Securities will act as a cover to buy plenty of time for Chris Madelin and Oliver Mason to distance themselves from Magna. This so-called Security Trustee have made bagfuls of money from this set-up and will now be doing very, very nicely thank you.

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  12. So Chris Madelin agreed to pay Hunter Jones 22% commission on all assets raised, used client money for his own personal shopping sprees and then disappears to set up another business, how is this not fraudulent/criminal activity??
    I understand from previous posts on here that 20% commissions are the ‘norm’ but that has been for loan notes and bonds with a longer investment term, surely 22% for 1 year money is considered very expensive! even for a conman like Chris!
    Where is the accountability for an FCA Regulated Trustee? Some serious questions must be asked about their conduct having approved the IM, as stated above, and allow their Appointed Representative, Hunter Jones, to then receive 22% of all client funds invested?
    I hope this case is taken up by the SFO, City of London Police etc.

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  13. Hey listen we need to focus on where the money has gone. I have the loan note conditions and yes ok it allows up to 30% of the funds raised to be used for operational expenditure in some cases. Fine. With the PD and planning gains these guys have achieved in the past even 70% of funds raised would be enough to work their magic – IF they actually bought property.
    But what if this time they raised all that money and spent it on options instead of tangibel assets?
    There are no property charges registered in the MIX SPVs, which means the trustee has a case to answer.

    The letter issued by Chris that AI has shared shows a contempt for their introducers by Chris. Not very professional and not very nice. Perhaps now the money has been raised he doesn’t need them any more?

    I care less about the fact my introducer got a big fee and where the hell the rest of the funds are. The issue is why Magna won’t communicate? And is the trustee now covering his own conduct by taking his own time to enforce security? (Unless there is NO Security)?

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  14. Yes, you’re right Bob1968, the security trustee Equity for Growth Securities has been caught sleeping at the wheel or, far worse, actively complicit in this farce.

    The shady characters in a heist movie would be more trustworthy than the jokers who’ve been involved in this fiasco, right from the introducers who pocketed a huge percentage of the loaned money for themselves to the borrowers who spend more time shopping in malls in Dubai than working on the developments (the Gucci and Armani suits donned by Chris Madelin and Oliver Mason at their presentations at the Mayfair Hotel worked their magic though – boy did they suck in a lot of investors to screw over!) to Equity for Growth Securities who’ve done nadda other than to first create and then blindly support a ponzi scheme right along, even while it collapses right in front of their faces!

    Now E4GS are going out of their way to deliberately drag their heels to give Chris Madelin and Oliver Mason even more time to run to the hills and thereby minimise the chances of the loannote holders getting even a small ratio of their money back. You couldn’t make it up!

    This catastrophe is even worse than the London Capital & Finance debacle.

    Equity for Growth Securities will be pulled infront of the FCA because of this calamity and undoubtedly stripped of their Licence.

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  15. Emerald – so is anyone taking action?

    I would be keen to establish a creditors group or demand a lender meeting instead of waiting for Magna or the trustees to call one? We have to do something.

    Liked by 1 person

  16. Emerald and Bob, I’d also like to get in touch with any Magna investors.

    The triumvirate involved in this misdeed, Equity for Growth Securities, HJ and Magna have built a wall around them and either gone AWOL or won’t lift a finger. One loses their faith in humanity when these one sees how these miscreants are behaving despite each having made a pretty packet from this job.

    I’m hesitant to go to the police, SFO or FCA at this stage, but that might be the only option as absolutely nothing has been done even though I, like many lenders, were due to be paid in February 2020, four months ago now and still haven’t been.

    I am a school teacher, not on a large income, and now it looks like I’ve lost a lot of my life savings 😦

    My email address is oliviabrian2 [at] yahoo.com if any Magna investors would like to get in touch so we can help each other.

    Olivia from Belfast, Northern Ireland

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  17. Check out the Magna Creditors facebook group – you have to prove your loan certificate to be admitted.

    And email magnacreditors@gmail.com

    Let’s work together to work out what has happened, what our rights are, and how we get our capital back.

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  18. Guys, I’m also a Magna creditor. Been given the runaround since February this year when I was due my loan back.

    Both Magna and Equity For Growth (Securities) Limited are impossible to get hold of and never reply to me.

    Any other creditors, pls connect with me to share ideas. My email is buskhan {@} googlemail.com .

    Liked by 1 person

  19. IM OUT OF POCKET TO WAS TO HAVE MY MONEY BACK THIS WEEK BUT I CAN’T GET HOLD OF THEM NO EMAILS ANSWERED NO ONE PICKS UP THERE PHONE

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  20. Hello Emerald,Bob,Oliva, et al,

    Can anyone update me on the latest and where to join any groups I am an LNI on the Magna MIX2 debacle and was defaulted on in May 2020 I recently arrived back in the UK as I had to leave my family and home overseas due to covid and my loss of investment with these criminals!

    Sincerely,

    Marc

    email > marcwigleyntbh@gmail.com

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  21. Investors are able to breath a sigh of relief now the Magna men are talking again. Just received a call from Hunter Jones promising my money back or better, depending on options taken!
    DYOR –
    Regards, Ass Kicker.
    20/10/2010

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  22. Received emails from Magna & HJ but just options on voting on two resolutions which are another month off! I thought this was due now reading the last email?

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  23. And obviously no one knows what the resolution is.

    Can they not sell this stupid Dubai hotel land? Also they have listed this stupid project that would yield them £900k (over estimated maybe) which pays for nothing! This project according to their inflated profit estimates would yield £900k whereas they paid introducers in excess of £5m…imagine that…£5m!!!

    Coming back to their own estimates, they have raised near £20m in loan notes…they have pre-covid inaccurate valuation of £42m..let’s assume this is accurate. They have banks with first charge in the order of £30m..let’s see…the net assets are therefore a big red -£8m. Now let’s assume a very aggressive 20% reduction in asset values (it should be near 50%)..that’s nearly £8m shaved off the £42m giving £34m value. That means we have £4m left for the loan note holders..now the security trustee would charge 15% of assets…that’s £5m to £6m…so now we see that actually the first charge lenders would not be paid in full. So all loan note holders….you are forced to accept whatever shit resolution these fraudsters come up with otherwise all your capital is gone!!

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  24. Any updates or resolution proposal? Ive been waiting on this for a long time…holding onto our funds and not updating….ever heard of creditors having to first help and then bow down and beg for the money back!

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  25. Together we stand divided we fall – the latter comes to mind in the case of us investors here … I don’t understand why we haven’t all made an effort to join forces ? I have reached out to the FB group which has 13 members on my last look visit but no reply to my email to join! Recently Duff & Phelps have shown an interest in the Magna MIX2 Ltd defaults to investors recently just so all investors here are aware!

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  26. I’m afraid you shouldn’t expect any resolution for a long time to come.

    “Mr Lambo” Chris Madelin priority in life is shacking up with his blondie Norwegian girlfriend again who enjoys parading herself in designer underwear and jewellery on Instagram bought with loan note lenders’ money.

    A little birdie tells me they blew over $150k on a recent shopping trip on designer goods.

    Their focus is living it up, not repaying loan note lenders.

    The Security Trustee, who have made a LOT of money from Magna, are colluding to keep this farce going as long as possible, in order to enable money to be syphoned out of the business to fund the ostentatious lives of Chris Madelin & Co. When they have milked every last penny they can out of the venture, eventually, in a few months’ time, lenders will discover there is no money left and the business is being shuttered.

    Magna, their Security Trustee Equity for Growth and their Primary Agent have been spinning this story about an investors’ meeting etc. for the whole of 2020. They are in cahoots and none of them really care, as each and every one of them are earning very nice salaries and the agents made enormous commissions on loan note lenders’ loans to Magna thank you very much (if you look them up on social media, they’ve all got flash cars, posh houses and designer watches, suits etc. – always the way with these Bernie Madoffs who take others for a ride).

    As the year draws to an end, there is no whiff of an investors meeting or any concrete resolution.

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  27. Vboy, in the UAE.

    Earlier in the year, around Lockdown 1 time, he was shacking up in Norway. Can see the pictures on his latest girlfriend’s Instagram profile.

    He was trying to avoid the UK, for obvious reasons, and pursuing ventures he found to be more glamorous such as his Donald-Trumpesque grand UAE hotel project and another in Scandinavia. The UK projects were not glam enough for him anymore and involved silly problems, such as having to pay back the lenders he’d borrowed tens of millions of pounds from. Typical ‘Ostrich Head in the Sand’ attitude from these kind of ‘serial entrepreneurs’.

    Thankfully the lad has been given a good talking to by people with more of a sense of responsibility and integrity, and is being brought back on track.

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  28. But there is not going to be enough money even to repay capital never mind the months/years of interest.

    They only have the Woking site left and are unable to find anyone to refinance it.

    Why dont all loan note holders write to the trustee and formally demand a loan note holder meeting..he cant ignore everyone! He is FCA regulated and would be uncriminated if failed to act on recorded post demanding him to take action.

    Think about it: if you lent to Mix2 you signed up for a year and were supposed to have a first charge on some uk assets. That hasnt happened.

    They want to blend all the Mix companies together but that wont work as it isnt one big pile of debt. There are several different loan bundles in separate companies with different contractual terms.

    Why would a MIX2 creditor sot alongside say a MixG creditor who loaned for 3yrs? The debt of the latter isnt even due yet.

    The only way now to stop these arrogant over ambitious twats is to shut them down..and also tet them bankrupted personally so they cant raise money or set up companies for a loooooong time.

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  29. As I mentioned in one of my comments above, I personally see no value left for loan note holders if Magna were forced to shut down.

    So whether we force a shutdown somehow it is of no use to us. If Magna does not shut down then it is v likely we get nothing back, but we can say that perhaps there is a 0.5% chance of recovering some funds and a 99.5% chance of total loss (I’m not trying to be funny at all!).

    So in my mind the best course of action is do nothing and just wait and see (perhaps for years or maybe our entire lifetime) what happens. Unfortunately we are at the mercy of the two kids having fun and living their life with our hard earned money!

    Lesson for life: never shy away from spending money on your own family, enjoying with them, that at least creates happy memories that we can look back on later in life…so much better than handing it to goons who use that money to buy girlfriends jewelleries and branded underwears

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  30. Mc Rumpel – forget the interest payments…I’ll be over the moon with my capital back…but I don’t see that happening. In fact if I get the capital back I’ll very happily give 20% of that in charity as a way to thank God.

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  31. Ijaz makes a valid point. Any interest is long gone. The best we can hope for is to get a good chunk of our capital back.

    As Ijaz says, shutting the company down – even though our desires may push us in that direction – is not going to enable us to get our money back. That will result in us getting a grand total of zero back. Thanks to Hunter Jones’ taking a massive amount of the money we have loaned and the rest of it being frittered away by Chris Madelin & Co., there is nothing left in the kitty.

    The Woking project needs to be progressed with, pronto. As stated above, it’s our only hope. There IS a massive amount of money to be made from it, if it finally progresses. See the video that Magna sent to loan note holders for the figures.

    There are genuinely reasons to be hopeful.

    Now that Chris Madelin has been brought to book and I understand is finally focused on Magna again, and, fingers crossed this will be the last lockdown, hopefully there will be the long overdue progress with Woking we’ve all been desperately hoping for.

    But it won’t be focused on, unless we bear pressure on the parties involved.

    Many people are saying above that “we should do this” and “we should do that”, perhaps expecting others to do so. Well, very respectfully, each and every one of us needs to take action, individually, **today**. Talk is cheap, it’s action that counts and bears results.

    We need to bear pressure on the entire coterie involved for Magna to present us with the long-awaited resolution and then have the loan note holders meeting. They were promised to us several months ago and the ‘final’ deadline was the summer of 2020. When I myself spoke with one of the blokes involved two months ago, he said this meeting would happen “soon”, virtually.

    Encouraging them to finally get their acts together includes relentlessly emailing, phoning and sending recorded delivery letters to Magna, Equity for Growth, Hunter Jones and the FCA.

    Just posting here and being upset is not going to achieve anything of course.

    I myself have probably spent about 40-50 hours in the last several months contacting all and sundry again and again and again through every means possible, and will continue to do so to encourage them to finally charge forward with Project Woking and present us with a roadmap to get our money back. I would humbly encourage every fellow loan note holder to do the same.

    Liked by 1 person

  32. You are missing the point entirely.
    If we get the company under the co trol of an independent firm there is a good chance we will find out objectively what assets if any are owned and what contracts can be made good by some other experienced property people.
    Chris and Oliver should not be given any more time to sit on this and do nothing.
    For all we know they are siphoning money off elsewhere, never mind living an lavish lifestyle.
    If we dont move the companies out of their control we cant find out where funds went and take action.
    If we dont take action against E4G we will never know if we have a chance to claim under his PI cover.
    You are completely inert and perhaps have a lot more money elsewhere if you are able to wait your whole life.
    I’m afraid that’s just ridiculous.
    Legal processes and recourse needs to start!!!
    What about punishment too? Do you think its right that these guys go unpunished and possibly promote to other innocent victims in the future?
    No way Jose.

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  33. I agree Mc Rumpel about not letting these guys off the hook. I believe what these guys have done is daylight robbery and should be punished for that and put in jail for life. But at the same time Im asking myself how best can I get my money back. My best bet is the funds that may be obtained by sale of their assets / land. Those assets if sold at depressed prices would not help us but if given time (now I don’t know how much) can recover and allow to be built out.

    I believe we (the noteholders) shouldn’t be negotiating between us and should somehow set up a communication means, preferably a call so we can discuss things. If taking legal action is the best course I’m all up for it too.

    I agree with Carl.. taking action is the best thing to do. I’ve been trying to get in touch with these guys through various means. After countless hours (definitely not a passive investment!) all it comes down to is finishing the Woking project and it sort of is dependent on that and some talk of a company being interested in forward selling.

    I don’t have the patience or extra funds for waiting for a lifetime for my investment to return. But I’m certain we don’t get anything back if there is anything done except for the satisfaction that these goons be brought to justice…but our system is such that these goons will be let scott free.

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  34. Hi, I am not an investor but was briefly employed as an agent before the lockdown until guess what – they didn’t pay me either.

    I have been reading the comments that are posted here as I’m sure a lot of other agents and Chris and Oliver have themselves too.

    My advise – they have covered themselves from a financial / legal standpoint. The best way forward is to get a investigative journalist to take the story up.. preferably one that’s high profile.. the media have to be involved for the justice system to take this seriously.. accountability has to be taken and these crooks cannot be allowed to just steal money and do what they want with it.

    Equity for growth and Hunter Jones were just as complicit and in on the whole facade no matter what they tell you.

    My best bet would be to found the media and find a high profile journalist / documentary maker to take up the story. This is a scam which has raked in tens of millions.

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  35. Anonymous – just asking. Did they offer you around 30% commission.

    Also, did you investigate their products and their financial strength before you tried to get investors for them?

    I understand that Magna paid the cut of the investment straight to the introducers. So I’m surprised they didn’t pay you.

    You are suggesting using a journalist. How is that organised collectively by loan noteholders? I’m all up for that but not sure how to progress this.

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  36. Hey
    I didnt use Hunter Jones but I know them from other loans I’ve made.
    Yes they have a strong sales culture but all these loans are entered into by HNWs whi sign that they understand the risk.
    I was aware from my broker that Hunter Jones sat at the top as some kind of master agent and did finance and admin processing for Magna so they was more than just a broker pocketing commissions.
    I dont think that is the point.
    In my other equity investments I see brokers incentivised at very high levels to get a project funded. This is no different.

    The point is that Chris and Oliver set the level of fee paid for their sales and admin processing and if it was 10, 20, 30, 40% of capital raised that was for them to decide.

    I’m in Mix2 and the sales memo states how much of the funds could be used for OpEx. I was ok with that. I understood these guys had the skills and integrity to get planning gains and make us our return – and their own profit – from the 60% net they kept.

    It’s a side issue.
    And if Hunter Jones did do those services then so what?

    It’s about strategy and the point is the two directors- and E4G – have failed strategically. And failed to act in li e with corporate governance and contractual responsibility liability now the debt is in default.

    I dont want the existing directors to be the ones to re-fi Woking or tell me when they will repay me. They don’t get to do that. Another competent party should do that.

    There are some good administrators who will take on Woking and do their best to secure a re-fi. I don’t want Chris and Oliver anywhere near it. The fact they have been messing about with it all these months serves to illustrate that the City and big private lenders dont trust their ability and they arent going to back them. So we have BIG management risk here that needs to be addressed.

    Who is up for a loan note holder call?

    Liked by 1 person

  37. So it wasn’t that straight forward. So Hunter Jones were the main agent ie they formed the relationship with magna and had the contracts. They then have a dedicated team called introducer team who contact marketing agencies / sales agencies and ask them to promote their service. They paid 18% to further agents to basically send clients their way.

    They kept the communication with magna and the agents just communicate with Hunter Jones. Being sales / marketing based the inner workings of security trustee’s and development contracts is not my field. We were basically glorified marketers. Since this whole unfolding house of cards I have since learned Reece of Hunter Jones has been involved in scams previously also. Loan notes that did not pay out etc. I was not an agent for very long at all but enough time to not be paid, do further investigation and realise this whole thing was to line the pockets of a few people.

    Also the main guy at equity for growth is notorious for being involved with scams. Look more into him. Carbon credits he was involved with.

    What they do is find regulated companies on the decline and offer them this opportunity to earn millions of pounds using their ‘regulated status’ to act as the ‘face’ of the organisation. As we all know ‘it must be safe if it has a regulated company behind it’.. they will keep going until they are forced to close but they have already made insane amounts of money. They will then just find another regulated company on the decline to corrupt.

    I have no idea how it would work. But I have watched many a documentary about scammers who made much less than hunter Jones, magma and equity for growth.

    Hunter Jones will try and convince you of their legitimacy by showing how legitimate their current ventures are. Truth is Reece is using the millions he made selling the magna loan notes at 30% commission and putting it into his own development ventures – basically trying to replicate magna’s model but get it correct. Same risk applies – only Reece thinks he can pull it off where magna failed.

    Like

  38. yes I’m in … sooner the better and a loan note investors private meeting on zoom m teams or other to seek a way forward with a third party !

    Like

  39. Ps. Comments like that by Mcrumpel are Hunter Jones employees. I’m sure we all can see that… constantly trying to push the light on magna and away from Hunter Jones. It’s a joke.

    Like

  40. I can promise you I’m not a fucking employee of HunterJones!
    I’m a dentist.
    All I’m saying is that you fundamentally fail to grasp commercial business if you think this is an issue about commissions.
    If you had made your 12% interest and got the whole lot back would you care that the sales, marketing and admin cost to the organisation was 30%?
    No.
    That was the point.
    They did forecasts at the start of MIX when sites like Frimley were in play and decided the company could bear this level of Opex.
    What has happened is that they have fucked up massively. And they are trying to turn the focus on the middlemen
    My broker has made me a lot of money through the loan book he built for me. This one just went wrong because of poor management and lack of property competence.
    We need a meeting for lenders!!

    I wont support Chris and Oliver telling us what’s going to happen. There are far better and more experienced property folk in the UK who can take on Woking and get it done. (HOWEVER theres too much debt hanging on its coat tails for anyone to probably be interested).

    Like

  41. Ill be part of the call too. So can someone else take over these properties and finish the projects with the intention of returning capital to investors?

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  42. First of all need to ensure there are enough people who want to be involved. There won’t be much point in a couple of people debating. We will end up sympathising with each other.

    I am happy with any arrangement that is decided by the majority here.

    Like

  43. Hi there
    There is a facebook group Magna Creditors where we can all join and discuss?
    You need to answer 3 questions – which are easy if you have a loan agreement.
    Then we know we are talking in a reasonably private forum.

    Like

  44. I agree BC, although it won’t be hard for a Magna insider to join as they could also answer the three questions. Can please all loan noteholders join and we can then discuss things.

    Like

  45. I agree BC, although it won’t be hard for a Magna insider to join as they could also answer the three questions “correctly”. Can please all loan noteholders join and we can then discuss things.

    Like

  46. I’m in Mix2 and the sales memo states how much of the funds could be used for OpEx. I was ok with that. I understood these guys had the skills and integrity to get planning gains and make us our return – and their own profit – from the 60% net they kept.

    Apparently they didn’t. To pay out 40% commission and return investor’s capital after one year with 12% interest (which is what MIX2 loans offered), you have to almost double the investor’s money in a single year after accounting for all your other costs (112 / 60 = 86% return required).

    Nobody capable of consistently doubling capital in a single year needs to send unregulated introducers to run around the Internet recruiting investors with misleading claims about “asset backed security” while paying them 40% commission.

    You’re the exception among Magna investors if you a) knew that Magna were paying 40% of your money straight back out to introducers and b) were OK with that. If you weren’t this thread wouldn’t exist.

    In the regulated arena the standard initial fee for intermediation between investors and investment schemes is around 3% – which comes with full professional financial advice (which you don’t get with unregulated introducers, as they’d be committing a criminal offence).

    Paying 40% of investors’ money out as commission for a one-year loan note isn’t “OpEx”, it’s suicidal.

    If you had made your 12% interest and got the whole lot back would you care that the sales, marketing and admin cost to the organisation was 30%?
    No.
    That was the point.

    They had no magic way to generate a 60% return in a single year (to make back 30% commission plus interest of 12% on top). Nobody does. And if anyone does have a chance to generate that level of return on top of all their costs, they don’t get unregulated introducers to offer it to members of the public, they keep it to themselves. That was the actual point.

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  47. Brev – I will have to check my MIX2 memorandum but from memory I’m pretty sure it said 30% of funds raised can be used for Opex.

    I do read all memorandums before lending and I always get a charge over uk property. I thought I knew how to do good due diligence too, as I know it’s not regulated.

    I knew Magnas track record on previous planning gains so I was confident they could indeed make significant profits on their uk deals. (By the way I wasnt convinced by the UAE hotel and didnt want to be in any of the Mix companies with that asset involved).

    This isn’t manufacturing. Or retail. Or other low margin sectors. Its property – planning gain and permitted development strategies. In the case of Mix2 I did think it was good the company stated the net retained funds that would be deployed in properties.

    Anyway the point is we all seem to have been mixed up together as lenders. They dont talk to each Mix company’s creditors separately. They make announcements as a “group” and forewarn in their language that they will be requesting extensions for a single loan book with only Woking left.
    Totally unfair and disregarding the contracts they signed.

    Soon after lending to MIX2 in early 2019 I asked E4G repeatedly what property had been purchased and secured in Mix2 and the guy had been faffing, mumbling and giving me the brush off for 18months. He never charged a property for the benefit of Mix2 investors.

    Bunch of jokers.

    Like

  48. Mix1,2, 3 and G…all the same now. I fear there is not going to be any return of capital. The benefit to the owners is basically 70% of our capital with the rest going to the thiefs in HJ and some other dodgy introducers.

    In due course I’ll name all the introducers (their personal names and what they said to me) from whom I’ve heard about Magna.

    Liked by 1 person

  49. Which company have you lent to?
    I can see why some lenders wouldnt care but since I’m in Mix2 and was promised a 1st charge on uk property (!!) it is important to have a response plan for each company. Or there is no UK Company Law at all.

    Liked by 1 person

  50. I am pleased to see this forum alive with input even if the comments aren’t positive in the return of our investments – what is written is real and we all should name & shame these lowlifes – if there are any connected media loan note investors this information alone on the review may be of interest to open up an investigation on all the parties involved and who I imagine are all reading this?

    Like

  51. Has anybody looked at the link between Magna, Equity for Growth and Hunter Jones in more detail?
    If you look at the FCA Register and search Equity for Growth you will find one Reece Mennie as an A/R of Equity for Growth (06/07/18 to 09/04/20). That would be Reece Mennie, CEO of Hunter Jones who were Master Introducers for the Magna’s investment products. That’s the same Reece Mennie pictured on Instagram (now deleted) on the beach in Dubai living it up with Madelin & Mason at the height of the fund raise. It wouldn’t be difficult to conclude that Equity for Growth may have been more interested in looking after the interests of Magna’s Directors (and their own pockets no doubt) rather than those of the unfortunate investors.

    Like

  52. Comeonthebhoys, your analysis is right, in terms of the partnership between Magna, Equity for Growth and Hunter Jones.

    However, Hunter Jones/Reece Mennie have parted ways with E4G quite a while back.

    Maybe I’m being naive in what I’ve been informed, but it is from multiple sources, that Hunter Jones have been totally dismayed with how Equity for Growth have mismanaged the Magna saga/fraud, and therefore broken ties with them. I don’t believe Reece Mennie is a bad guy and he has been desperately trying to sort this situation out behind the scenes. He is the only part of the triumvirate that has bothered to try to update lenders, even when Magna and E4G have put obstacles in his path saying he’s merely a third party agent.

    The key point is what you say in your last sentence. Equity for Growth’s LEGAL duty – their raison d’etre as the Security Trustee – was to protect the interests of loan note holders. They have been woefully pathetic in that sense.

    As we have all seen, they have disappeared in the last several months. We haven’t even had one update from them!

    It’s beyond ridiculous that they haven’t rolled up their sleeves, tried to sort out this fiasco and regularly update loan note lenders. That’s what they exist for!!

    I can’t even get hold of them for love nor money. Tried to contact them, through a variety of means, but they simply don’t get back to me. On the only one occasion they did, they sent me a canned response that I am aware they send to other loan note holders, saying they won’t do bugger all.

    The biggest scoundrel in this entire process after Chris Madelin is Tim Baldwin, CEO of Equity for Growth. He has siphoned a sizeable amount of money from Magna (i.e. loan note holders’ money) for himself and his company, classified as ‘fees’ to do very little, and therefore, as you rightfully state, is very much in the pockets of Mr Lambo and Oliver Mason. That’s why he does absolutely nadda.

    The only reason he is able to get away with his miscreant behaviour is that the loan note holders for Magna he has screwed over let him. They will prioritise posting here on BondReview thinking that will achieve anything rather than reporting Equity for Growth to the FCA.

    The ONLY thing that will motivate Tim Baldwin to lift a finger is if there is a risk of Equity for Growth losing their mandatory FCA licence, therefore I’d encourage everyone to report them ASAP. They’ve been getting away with it for way too long.

    Like

  53. Jemima, I think you are being naive I’m afraid. I’m convinced Mennie was in cahoots with Madelin and Mason…all seen bigging it up together in the UAE on the now deleted Instagram posts, driving flash cars (got himself a nice Bentley), hanging out every day at the Mayfair Hotel, flying around by private jet etc. Mr Mennie’s track record is questionable to say the least, stretching back to his time working for that notorious City scoundrel Kulvir Singh (SVS Securities, Carbonex, Aston Lloyd) when he was flogging carbon credits and Ukrainian farmland. Of course, you’d expect him to distance himself from Magna but it doesnt take a lot of imagination to join up the dots…

    Like

  54. Received this info –

    I wanted to inform you of some details and information we now have regarding Magna Group and their loan notes.
    Following our latest meeting with Magna and the security trustees, we can confidently say there is a feasible and advantageous resolution that can be implemented if all the components and structures we have negotiated are actioned.
    With their current debt structure and asset position, Magna has not been in a situation to offer a road map for investors and has needed to implement changes across the whole company before this has been possible.
    We have secured a leading UK developer with over 300 years of combined industry experts in asset management, financial debt structuring and property development to work with Magna and they have been instrumental in providing the outlet for investors.
    The restructure and support enables Magna Group to focus on the vast potential held within the Woking project, which will be a central feature of the security and capital realisation. There are many more phases of which will provide capital support, and these are currently being finalised.

    Like

  55. It didn’t mention any of this in the last investors update from Oliver Mason (16/11/20) not that long ago was he there? – and who are you with your crystal ball?

    Like

  56. Looking like the worst possible news now for investors here and hope the Magna team and their families enjoy the gypsy death curse bestowed upon them –

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  57. I regrettably write to you today extremely disappointed with a situation that seems irreparable. I have just been informed, the leading project that Magna Group were basing their restructuring on in Woking has been sold to a 3rd party. This viable and profitable asset was fundamental in the plans moving forward.

    A lot of hard work went into providing this solution for investors, and I am deeply saddened to say that Magna Group will be writing to investors shortly explaining a potential route to insolvency.

    Like

  58. Hi all, I just posted on another thread before I just saw this most recent one and I received the same information as above this afternoon as I also have a Magna MIX2 loan note that was due at the beginning of last year done through Hunter Jones that has been in default for nearly a year now.

    Hence as I posted on the other three, I was wondering in there was a victims group or any sort of (I guess for want of a better term) a way of taking any sort of class action against Hunter Jones E4G as looks Like Magna wont be able to pay us back all or if anyone had been able to take any action against them as it sounds like they were complicit in this per the information in this and other thread and I wasn’t aware of all those connections before I invested.

    Falling that it doesn’t sound as if investors will get their money back so if anyone has any suggestions, ideas or updates please post, thanks.

    Like

  59. Lost all my money….these scums, bastards, liars, bastard son of bitches, they paid for their holidays.. and that fucking Chris paid for his luxurious time with his naked low character disgusting girlfriend…

    Like

  60. Surely there is an investor with a legal background here who can assist into investigating those people and what they how they managed to burn it off and somehow hold them accountable and freeze the rest of the assets they have indirectly bought using investors money or otherwise found a strategic exit to commit such fraud or theft. One after the other projects going into insolvency isnt something that likely to happen! There is a missing factor that we all know which is not being addressed here

    Like

  61. I agree Faisal. Something we need to identify. One after the other, they blew all projects! Seriously, my grandma in her nineties would have at least saved one.

    Like

  62. My husband and I are devastated beyond belief at today’s news of complete write-off of all investors money.

    One of the reasons Chris Madelin, Oliver Mason, Tim Baldwin et al have been able to so easily get away with taking MILLIONS of pounds of creditors money for themselves is because the loan note lenders to Magna are among the most incompetent and useless bunch of people I have ever come across.

    I have been taken for a ride by several U.K. property loan notes, unfortunately, but compared to ANY of the others (for instance Signature), the Magna Global loan note holders are by far the most disorganized, ineffectual and spineless.

    While the loan note holders with other non-paying loans have developed well-organized communities; taken robust, concrete and ultimately effective action; employ newsletters and other modes of professional communication; etc. etc. Magna’s lenders spend their time exclusively whinging and moaning here on Bond Review and in private WhatsApp conversations.

    Fair enough, you wish to let off some steam, which is fully understandable. But ONLY sitting here and elsewhere moaning and posting comments that *somebody else* should take action is the height of shamelessness.

    Guys, Alexander the Great did not conquer more or less the entire known world by sitting in his bedroom in his onesie chomping Monster Munch while ranting on social media. Stop behaving like pitiful, third-rate whining teenagers.

    If you want to have a chance of getting even a small ratio of your money back from the sophisticated mafia involved in taking your money for themselves through the Magna Global Ponzi scheme, TAKE MEANINGFUL ACTION STARTING TODAY.

    As he enjoys another sunset over Dubai from his villa, Chris Madelin must be chuckling at how incredibly easy Magna creditors have made it for him to take their money through their apathy and incompetence.

    p.s. there is a “Magna Creditors” Facebook Group you may wish to join.

    Like

  63. I added the bond review to the FB page so we start pulling all of us and information together on this scandalous ponzi scheme in an effort to ruin these scumbags like they have ruined us investors!

    Like

  64. Important Update
    Inbox

    Oliver Mason via bf01.hubspotstarter.net
    Sun, 10 Jan, 18:14 (11 hours ago)
    to me

    Dear Marc Wigley,

    We hope you enjoyed your festive period and we wish you a happy and healthy New Year.

    We are very sorry to inform you that on the 31st of December 2020 a 3rd party exchanged on the Woking project by direction of the fixed charge receiver. As explained, we had a bid which was put in with Savills mid-December but was not chosen and the receiver did not discuss this with us prior to accepting the lower bid with the other party.

    This means that any plans that we had for the continuation of the project have come to an end.

    This means that the Magna Group companies do not currently have any viable plan to repay the loans and that the resolution we had proposed needs to be adjourned until we can provide further financial clarification. We as Directors are assessing the options, the viability and legality of any continuation of the businesses.

    Given these new circumstances we have taken the decision to seek insolvency advice and we are keeping the security trustee, briefed on this. We will be in touch shortly with our proposed course of action as soon as we have assessed the best possible course of action for creditors.

    Kind Regards,

    Chris Madelin and Oliver Mason

    Magna Group Global, Berkeley Square House, Berkeley Square, Mayfair, London, London W1J 6BD, England, 44 (0) 208 126 3957

    Unsubscribe Manage preferences

    The End ……………………….

    Like

  65. What absolute F*uckpigs, who begins an email knowing full well what’s coming after with “We wish you a happy and healthy new year” ohhhhhhh but sorry you know that money you invested……yeah well its gone up the wall. Total madness, clueless wannabes. Totally deluded, they knew full well every time they uttered a word it was total BS. How can you go from having hotels being built in Dubai and conquering Europe to 18 months later seeking “Insolvency advice” if that isn’t an out and out pre mediated throughout out & out scam then I don’t know what is.

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  66. You’re spot on Terry.

    This was a premeditated, masterfully-executed scam a la Bernie Maddoff to loot tens of millions of pounds.

    All the scoundrels involved in this scheme are living it up on the millions they’ve pocketed.

    This includes the likes of Tim Baldwin at Equity For Growth (Securities) Limited. He’s the biggest crook of the lot as he rubber-stamped the ponzi scheme. He knew it was a fraud but because Magna gave him juicy ‘bonuses’ and wined and dined him, he gave it the go-ahead.

    Because Chris Madelin was paying Tim Baldwin off while Chris Madelin hatched his escape plan to run off to Dubai having transferred millions to his Dubai bank accounts, Tim Baldwin refused to lift a finger throughout 2020 despite all the vociferous complaints lenders made last year. That ‘do nothing’ attitude from Tim Baldwin bought plenty time for CM to escape the country with his loot to Dubai in order to escape the arms of the law in this country.

    The perfect heist.

    The Great Train Robbers stole £2.6 million (£50 million in today’s money), but Chris Madelin, Oliver Mason and Tim Baldwin have succeeded with an even more ingenious heist, stealing £20 million in a much easier way and without having to give ten pence back to their victims or spend a day in prison.

    Total geniuses.

    Like

  67. I have invested in several loan notes however this is the most blatant crock of shit out of them all. THSG was easily recognisable as bollocks should you manage to view Chavely Williams and Thomas Williams instagram account loving life in Monaco and London. They have closed their accounts today however I have some good screen shots of their lifestyles.

    Chris Madelin is a cringing lying little shit!!! How can a whole fund raise rely on one project which has apparently been sold to this party???? A very bizarre situation which we need to investigate. What about the other developments.

    The positive of Magna and HJ is that they mate media whores and it’s all accessible on the web!!

    Like

  68. What is the action following all this now? Do we sit on our hands or actually make the bastard Tim Baldwin sweat?

    Chris M, that scum I hope his girlfriend sucks all his money and leaves him leaving him high and dry. Oliver M can feed his three pumpkin kids some of this money and grow them into the same kind of rascals that he himself is.

    Don’t forget that fat bastard Reece is enjoying his time in Dubai with his family. He has stolen the money from his own HJ collection loan note holders and using that money to enjoy the sunsets in Dubai. Wasn’t it Dubai where they cut your hands if caught in a theft? By that account, Chris M should be without hands by now.

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  69. Check out the Magna Creditors facebook group – you have to prove your loan certificate to be admitted.

    And email magnacreditors@gmail.com

    Let’s work together to work out what has happened, what our rights are, and how we get our capital back.

    Like

  70. I’ve been in the regulated financial services sector for over 40 years and was asked to look into a clients holding in Magna for him, found this thread and I couldn’t believe what I’m reading, you couldn’t be more right Jason, this was a well thought out, premeditated fraud.

    Chris Madellin
    Oliver Mason
    Reece Mennie
    Tim Baldwin
    Hunter Jones

    All the above should be immediately investigated by the Police, Fraud Squad and anyone else interested in justice.
    The money raised, money stolen (via 27% commissions!!! or by the key principles) and the speed at which this happened as a full capital loss for ALL investors duped should be an open/shut case.
    I have advised my client to join the creditors group and I will be watching developments closely on his behalf and hope swift justice can be served against the 5 thieving ‘businessman’ above!

    Like

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