Roger Allanson, former head of Allansons LLP, has hit back against the shut down of his unregulated investment scheme by the Solicitors Regulation Authority.
Allansons ran a litigation funding investment opportunity offering 50% returns which was, according to third-party introducers which solicited investments on Allansons’ behalf, “zero risk” and “100% secure with FSCS”.
In a letter sent to Allansons investors dated 10 June 2019 and on Allansons letterhead, Allanson states:
I am extremely grateful to you for your support and faith in the funding opportunity I have given to you. Unfortunately the SRA have panicked due to the insistence of one of your number that matters are not what they seem.
Matters are and remain exactly as they were.
When he says that “Matters are and remain exactly as they were” Allanson presumably means “apart from the fact that I was banned from running my practice in late 2018 over unrelated client money breaches, and have had my certificate to practice suspended”.
Allansons originally projected that the scheme would deliver 50% returns in 6 to 18 months. The failure of Allansons to meet this timescale is blamed on the lenders stringing the cases out in court.
The lenders have not treated this exposure well and have treated the challenges like a can to be kicked down the road rather than them address the real issues in the cases. This has delayed results and that has added to the concerns that this plan has not yet borne fruit.
As yet the SRA has not yet officially stated its reasons for shutting down Allansons. When it intervened it stated “Mr Allanson, as a manager of the firm has failed to comply with the SRA Principles 2011, the SRA Practice Framework Rules 2011 and the SRA Accounts Rules 2011” but has not elaborated on these compliance failures.
Allanson claims it is because the SRA thought Allansons was too small to handle the 4,500+ cases referred to in his letter.
The SRA cite the lack of results as well as the volume of work involved in the number of cases, which they believe to be beyond the capabilities of a small outfit like mine. They have found an excuse for regulatory intervention and deludedly believe they have acted to protect the public. They have done nothing of the sort.
Allanson insists that the investment scheme is still operating, and that the cases will be passed to larger firms of solicitors.
He also states that the After The Event insurance – which is the bedrock for the claims by third-party introducers that the Allansons scheme is “zero risk” – is still in effect.
I have future-proofed matters to safeguard and ensure the fund route back at the end.
In the immediate aftermath of the Allansons shutdown, the firm that sourced clients for Allansons and analysed whether they had a case for suing their mortgage lender, Mortgage Audit Bureau, displayed this message on their website:
We have been made aware this morning (24th May 2019) of a re-assignment of cases between Allansons and Quanta Law.
This message was however swiftly removed. The MAB website now directs Allansons clients to a FAQ written by Gordons LLP, the SRA’s Intervention Agent.
Gordons LLP’s FAQ states bluntly:
If you were a client, Allansons can no longer act for you. You will need to find another lawyer to act. Gordons are not acting for you.
There is no mention on Gordons’ FAQ of any deal to take on Allansons’ clients.
Allanson finishes by attacking a “claim-farmer” called “MFN” which he says is contacting Allansons investors. Allanson denies MFN’s claims that his investors were “taken advantage of”.
This was not an operation to line the pockets of any of participants who have a role in seeing that the lenders are taken on effectively. Each of us had an important role and outsiders do not know the extent of it nor the amount of work involved nor the science behind the systems, staffing etc involved. It is mischief-making bordering on blackmail.
The letterhead includes the rather curious footer “Tidying up after the Solicitors Regulation Authority”. So far it looks like the other way round, that the Solicitors Regulation Authority is tidying up after Allansons.
This text appears where a solicitor would normally include their SRA registration details, which may explain its placement.
Is anyone putting together an action group to get to the bottom of the Allansons debacle?
would like to join, but where is the money? and who do we take to court?
Hi,
I would suggest advice from a Solicitor in the first instance.
Has anybody received the letter yet from Allansons? I’m on holiday so I can’t check.
I can’t believe that 4500 cases are going to be re-distributed with no thought to the Investor and the money they have spent to get this far.
I know that Allanson was fined for a mis-management of Company accounts but apparently there was no criminal intent.
It would appear to me that the action taken by the SRA has compounded the problem, and at least they need to set out an action plan to protect Claimants and Investors alike.
It would indeed be a major step by the SRA towards enlightening us all by providing the reasoning behind their draconian action and, as the poster above suggests, setting out an ‘action plan’ to unravel this grim situation.
I do hope this happens.
ladies and gents, there is now an action group on this debacle that is being set up as of today. Brev will attest to the fact that I am the specialist lawyer on two other pages: MJS and London Capital and Finance, and have successfully had David Ruben appointed on the MJS debacle and am actively challenging the role of Smith and Williamson on the LC and F problem. Brev has been absolutely instrumental in highlighting the continuing issues with the unregulated investments which are causing furore with consumer investments: something that has to stop!
I can be found at [email protected]
Please bear with me whilst the page is being created at which point you are free to apply to join and I will be residing to give advice.
How he’s managed to squirrel away around £18m is unbelievable. I had £100k invested here so obviously I’m very interested to see how this develops. Hope he didn’t lend it all to Bolton Wanderers to pay their bills.
Hi…
Anyone else getting requests from the press regarding all this? I have two emails from the Mail on Sunday asking for information.
On the one hand we have the SRA and their Intervention Agent telling us they have shut Allansons down and intimating it is unlikely there will be any compensation as this is a ‘failed investment’ and Mr Allanson himself saying everything is OK and continuing to plan.
I asked the SRA how this can be a ‘Failed Investment’ when they have bought this about and as a result of their actions negated the insurance which was supposedly going to reassure investors that our involvement was ‘safe’. Today I had an email saying they would answer me next week (25th).
The original ‘Introductory agents’ that I dealt with don’t want to know and deny any responsibility.
And above we have Jane Sanders setting up an ‘Action Group’ for investors to join when the page is ready. Jane directs us to other very serious cases which have resulted in significant financial loss for investors.
The ‘Independent Legal Advice’ I contacted want £250 + VAT per hour and warn that this could be s lengthy ‘case’ and wad I prepared to fund this?
So.., there is too much going on…I just wanted to Invest…not to get involved in all this stuff.
How are the rest of you handling this….isn’t it best to wait until
Mr Allanson updates us?
And now The Mail on Sunday are asking me (anyone else) for Information.
Never heard a squeak from Allanson or the introducer at this moment in time. SRA have classed it as an investment so no chance of any compensation via that route. Probably wait till Allanson breaks cover and reveals his hand before deciding on my next move.
I’m also an investor, trying to find a course of action. I too have been advised by the SRA to seek independent legal advice. We should all club together- Power in numbers.
There is a discussion group here for investors that you can join;
https://www.facebook.com/groups/2391577194412274/
I’ve spoken to contributors on here and posted comments on the other Allansons thread on Bond Review, hopefully demonstrated our knowledge of the issues. At this point the advice I’ve offered is make a complaint to Allansons regulator and await the outcome but be realistic and don’t expect too much. If no one has objections I’d like to join the FB discussion group. Advice given post a SRA response should perhaps be dealt with in a more private forum.
I have invested £36k last year and my cases were at stage 3 and was expecting some return on my investment.
unfortunately, I heard about SRA intervention through third parties. I would like some one to guide me to amicably resolution.
I spoke at length to Paul MC above, Daxel. I would suggest you contact him.
I have just been COLD CALLED about my investment at Allansons! They knew how much I invested and when, my full address, everything!! They said they had the FULL LIST!! The only people who should have my information are Allansons!! They have SOLD our information for yet more of Us to be SCAMMED! The FRAUD hasn’t stopped!
Phone number?
Phone number for the cold caller if possible
Ive had a cold call too but number was withheld and when I asked where they got my details from she put the phone down.
I am also an investor and dont know what to do at this point any ideas
Darren…have you joined the Facebook group of people in the same position as you?
https://www.facebook.com/groups/2391577194412274/
It might help you.
can someone add me to this facebook group i have sent a request, lost 32K 🙁
Just come across this forum. I too have invested thousands I am ill with worry. Do you think we have lost our money? It’s all I had.
I too invested with Allansons and am just discovering this problem today.
Roger Allanson struck off: https://solicitorstribunal.org.uk/sites/default/files-sdt/12131.2020.Allanson.pdf
Quite a shocking judgement and gives everyone above a clue where there money went which isn’t good news
Well it nearly all went to Constantine Pagonis. He ran the racket.
Wow! Oh Roge
Poor old roger, he is merely a stooge and a front for someone who has NOT been named in any reports or legal papers concerning this case. He knows he cannot name names and that is the issue.
Do not believe everything that has been said about Roger in the mainstream press, they have their own agenda with this matter.
The real culprit is far,far away.
Very sad for Roger and his lovely wife.
Very interesting observation, Debbie. This takes this issue into a much deeper level and suggests the attempts to get to the bottom of it all have focused in the wrong direction?
Have you also lost out due to this ‘investment’?
Paul Whittall [email protected]
i have lost 5×4000 pounds over this litigation funding scheme. i am 76years old and want my money back can you help me and others do the same.
Allansons LLP is in administration. The Statement of Affairs includes shows investors’ money in owed to creditors and investors’ money out owed to the partnership; i.e. the liquidator will be responsible for trying to recover the money and return it to investors. It is very possible that recoveries will be minimal or zero and the best course of action would be to write off the investment and treat any return as a bonus. Sorry to be the bearer of bad news.