Update 1.10.19: This review was written when FLF Litigation Services was known as Fortress Legal Finance. The company changed its name (again) in September 2019. The original review follows.
Fortress Legal Finance offers unregulated bonds paying 7.12% per year for a 3 year term and 11.5% per year for a 5 year term.
Funds raised are used to invest in litigation funding.
Investors in Allansons (an unrelated litigation funding scheme that collapsed earlier this year) have reported being cold-called with an offer to invest in Fortress paying 12% “guaranteed” over a 6 month period.
Who are Fortress Legal Finance?
Fortress Legal Finance was incorporated in 2015 as Robert Dodd Watches Limited. According to its last filed accounts, it was dormant as at 31 December 2017. In November 2017 it was renamed Litigate Aid Limited, and then a month later to Fortress Legal Finance. In February 2018 Andrew Lynch took over as sole director and controlling owner.
Fortress is yet to file accounts as an actively trading company.
Fortress Legal Finance is currently owned 70% by Andrew Lynch and 30% by Berriblue Limited. Berriblue is owned 55% by Andrew Lynch and 45% by Tracey Lynch.
Fortress Legal Finance’s promotions are signed off by First Financial Advisers Limited. Fortress Legal Finance’s Twitter feed states that it obtained Section 21 approval – allowing its bonds to be promoted – in December 2018.
How safe is the investment?
Fortress Legal Finance is promoted by unregulated introducer Michael Beyer as offering “an investment that is unaffected by market conditions, recession or BREXIT.” and “ability to reduce overall portfolio risk”.
The reality is that these are loans to a small start-up company and carry an inherent risk of 100% loss. For the vast majority of investors holding either cash or regulated investments, investing any amount in unregulated bonds certainly does not reduce overall portfolio risk.
Fortress Legal Finance represents that it will have After The Event insurance in place, which covers it in the event that the cases it funds are unsuccessful.
This does not mean that the investment is risk-free. A document on Fortress’ website states that After The Event insurance typically covers 30 – 40% of the total amount spent on a case.
For the investment to succeed, it is not enough for Fortress just to get its money back (let alone 30-40% of it); Fortress needs to be able to consistently generate up to 11.5% from successful cases after all costs (including the costs of any commissions paid to unregulated introducers such as Michael Beyer to source investment).
Should it fail to do so – an inherent risk with lending money to any small startup – investors risk losing up to 100% of their investment.
Should I invest in Fortress Legal Finance?
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 individual loan note to an unlisted micro-cap company, 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 returns of up to 11.5% per year is inherently very high risk. As an individual, illiquid security with a risk of total and permanent loss, Fortress Legal Finance’s loan notes 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?
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 is sufficient for the risks involved in lending to a small company.
If you are looking for a “guaranteed” investment, you should not invest in corporate loans with a risk of 100% loss.
Thank god you have made us aware of yet another high risk “litigation” mini-bond Brev, you are a life saver. As a victim of the allansons bond, I wish I had read your website before i had burnt my money investing into these scumbags’s misleading products.
Andy Lynch…By the looks of it is a well known name in the alternative investment and HMRC arena for defending a lot of these alleged financial fraudsters.
Ironically now he decides to create his own very high risk alternative product that will probably squeeze the fees out of the monies raised from naive investors which as you point out Brev once the agents are paid 20-30% that increases the risk substantially.
This ATE insurance is overrated and it is sad state of affairs that it is being used a sales tool.
If these cases were so easy to win why don’t the likes of Roger Allansons and Andy Lynch put their own legal firm’s monies into it?
instead of raising debt capital at a cost of 20-30% to brokers, which is insane! Furthermore by the time Andy and his fellow partners take their slices, then it is most likely a significant chunk of the original capital is eaten up before any actual real work is done.
Andy is obviously seeking an early easy retirement here.
Now it’s just a question of “when” it will collapse like all of these other mini-bonds do once they have raised enough money for the owner’s retirements.
THE COMPANY HAS BEEN RENAMED AGAIN TO FLF LITIGATION SERVICES, ANDY LYNCH WORKS FOR FRANCIS WILKES AND JONES A REPUTABLE COMPANY, I WONDER IF THEY KNOW ABOUT HIS ACTIVITIES??????
https://forums.moneysavingexpert.com/showthread.php?t=5992150
I just checked Mr Lynch’s current form and it appears his is a Director of FPR Global PLC. Incorporated in March 2018, it states on the website that their sole intention is to float the company on the London Stock Exchange Q1/Q2 2019.
A requisite to float on the LSE is for 3 years’ audited accounts to be filed.
Eh?
Oh – and the first year’s accounts are overdue. I wonder whether they will be audited.
What I don’t understand is why the authorities are not putting a hold on these companies and its directors whilst an investigation takes place. Rather than an investigation start once all funds have been misappropriated
Well well well, why would they change their name so fast again if they had nothing to hide then?
….Andy Lynch is a scouser and the truth does not run very far from they say about wackers….
Rumour has it this company is actually owned by another ex convict pikey scouser by the name of Stephen Piles who sees himself as a bit of a gangster and Andy is just a frontman for him…
Andy defends a lot of fraudsters maybe he has taken ideas from them to set up this Allansons No.2 which is designed to take the life out of investor’s capital before it defaults….
Does not surprise me if he setting up an IPO to float too, if he is desperate to make retirement money…..as he obviously couldn’t make it to partner level at any reputable law firm…any investor with half a brain should know how IPOs end up especially with a fraud law specialist running it…..
It’s really good that the truth is coming to light about these companies and who is really behind them.
These scumbags need to be investigated…
Anon, you should really think twice before making your stereotypical scouser comments – it really doesn’t make you clever or credible. Are you still living in the 1970’s?
Does anyone know why Fortress Legal Finance have changed their name to FLF litigation Services ltd?
The company itself has changed its name many times, it’s becoming alarming!.
Please help?
PROBLEMS WITH FORTRESS INVESTMENT GROUP, THEY HAVE THREATENED LEGAL ACTION AS THEIR NAME IS VERY CLOSE AND ALSO PROVIDE LITIGATION FINANCE, THEY WILL PROBABLY CHANGE THEIR NAME AGAIN WHEN FLF (FERGUSON LITIGATION FUNDING) ALSO CATCH WIND THEY ARE USING A SIMILAR NAME.
Blimey. You’d think that if people are still thinking up new names for soft drinks, it can’t be that hard to think of a name for a litigation finance company that someone hasn’t already used. ?
i have invested 20k in fortress which i cannot afford to lose .Iwas sold it by someone said to be from global reach who suddenly left the scene.global reach have no knowledge of him .I know i have made a big mistake i tried to cash in some of it but was told no.i am almost 76 and was in a low state at the time with poor health and as now mourning the loss of my wife .I will continue to seek
I’m very sorry to hear that Adrian. What is the exact name of the company who introduced you? If it was Global Reach Markets Ltd then they are FCA registered and you have a chance of getting some money back. However I have to say it is more likely the person just claimed to work for them or set up a company with an almost identical name in which case it doesn’t look good. Check and keep all the paperwork you have. Fingers crossed it works out for you.
HOW COMES ANDY LYNCH WHO IS CURRENTLY EMPLOYED BY FRANCIS WILKS&JONES ( https://www.franciswilksandjones.co.uk/site/people/profile/andy.lynch ) IS ALLOWED TO ROB CLIENTS MONEY AND GET AWAY WITH IT?
THEY TOOK £20K FROM MY 72-YEAR-OLD FATHER, NOW HE IS TOO SICK TO DEAL WITH THEM.
THIS COMPANY HAS EFFECTIVELY SHUT DOWN FOLLOWING THIS ARTICLE.
THEY HAVE TRIED TO HIDE BEHIND A REBRAND https://beta.companieshouse.gov.uk/company/09910024 BUT IT SEEMS THIS NEW BRAND FLF LITIGATION IS DOING NOTHING.
SO WHERE IS HIS MONEY GONE?
THEY SHOULD NOT ABLE TO GET AWAY WITH IT.
DOES ANYONE WHO I SHOULD REPORT THESE FRAUDSTERS TO?
I too have 20k invested with Fortress legal finance and am very worried . I am 76 and have tried to
withdraw even some of my investment but not been successful .
Yes it was global reach who closed down they were registered at companies house and vanished I have the owners details .The global company has something in common with Andy Lynch in that they both evolved from watch selling companies.
global r m consultants 10015759 previously Harvey watches[ Robert Harvey 17 Harland road London se120jb
Adrian, you are right there are growing links of watch companies being linked with Fortress Legal.
Do you think these crooks spent our hard-earned money on watches? it makes it harder to trace the cash, this is what drug dealers do..
How do we go about hiring a forensic investigator for this potential case of misleading and fraud by misrepresentation?
Surely the National Crime Agency, would like to know about bent lawyers stealing money?
I have my suspicions about the way the company has operated and the links by way the investments were obtained maybe illegal or at least sharp practice I assume.
I have also invested with Fortress via GRM tune of 23K. I have an alert via companies house which informs me of changes in the company now FLF. July 6th alert states that Robert Dodd is now the registered person with significant control followed up July 10th by a further alert stating Andy Lynch no longer being the person with significant control. Neither of the two phone numbers i have are functional. None of this bodes well to my way of thinking.
I have the same problem Tony
Thanks Adrian, i`m sorry to hear you`re in the same boat as me, were you sold this by GRM? Do you also have litigation funding with Allansons solicitors in Bolton?
Tony i dont have any dealings with allansons but i was sold my investment by G.R.M not sure what is happening now that Andy Lynch has lost control.
Thanks Adrian. Good job you`re not also with Allansons as looks as if that might also be a scam.
Who is Cameron Robbins and exactly what part of this company does he play. I think that this company is an off-shoot of another scamming company that was Future Fuels Renewable Ltd, who I was ‘scammed’ by. Action Fraud and the M<etropolitan Police have been notofied about the said company, and I hope that action will be taken against these so called 'Directors'.
Oscar1
Hi Mark. You will observe i have posted previously. I also do not know this person, i`ve never come across his name, where does he fit in? I see from my companies house notifications that the strike off notice has been suspended which would suggest at least some input by FLF previously Fortress. I am also an investor into what looks like a big scam. Wondering if there are any action groups assembled, haven`t come across one myself as yet. I`ve searched Facebook without success, does anyone have any info?
Hi Tony.
I do not know of any action group formed as yet, but I have been in touch with Action Fraud Team with another company called Future Fuels Renewables who have passed on my concerns to the Metropolitan Police for their information. I believe that this company is of a ‘Pyramid type, scamming company.
You could pass your concerns to the Action Fraud Team for their initial enquiries into the Fortress Company to see if they can assist you.
Best Regards.
Mark
Thanks Mark, i`ll do that. Are you also coming to the conclusion that Fortress is a scam? Tony
Hi Tony,
It would appear that Fortress is trying to raise money in order to offer so called Bonds to investors.
This type of business is known as a ‘Ponzi’ style money raiser and I am sure that it is illegal in the UK.
You would have to check this with the FCA and see if the Company is listed with them and also has FSCS protection, which I am sure they have not.
The moral is, if a company offering Bonds and a High Rate of return as Interest, they are not licensed with the FCA, and it is almost certain that any funds given are at risk, and possibly a Scam is taking place. The old Maxim applies with such schemes: Buyer Beware.
Best Regards.
Mark
I have been in touch with action fraud several months ago but they need more information if you can supply it they may act .
Thanks Mark. Under what name are they attempting to raise bond monies? do you know? Thanks, Tony
Sounds a good suggestion, i`ll try and get in touch. Tony
Hi Tony,
I don’t have any investments in Fortress. I have looked at their portfolio and proposals for raising money in order to offer Bonds to perspective investors, and came to the conclusion that neither equate as a viable proposition to invest.
I hope this clarifies my interest in this company.
Best Regards.
Mark
Hi Tony.
I don’t know how or where the company is trying to raise the capital from, or under which name they are trading. Sorry.
Best Regards.
Mark
according to an email i received o 4 april they have all the funds they need and will be able to make payments around september. 2 Week later companies house informed me of the action they were taking .i received the email from [email protected] i enquired by email to ask questions on their ability to fulfil their obligations but as expected no reply.
Thanks Mark.
The only hope i believe for any of us to get returns is with the assistance of the law [ action fraud should probably be more helpful]
Hi Adrian.
I strongly recommend that you contact Action Fraud as soon as possible and give them all the information that you have on this company, but mainly the people that are running the scheme.
Action Fraud can be contacted through your local police force who will give you a unique reference number for when you enlist the help of Action Fraud and it’s accompanying agencies.
I hope that you are successful in your quest to retrieve monies that are owed to you and fellow investers.
Best Regards.
Mark
Mark i contacted them many months ago with lots of information but they needed more i gave them a lot to go on . Now it is up to others affected to do the same maybe then and with recent activity they might take notice and act.
Hi Adrian.
I am sure that Action Fraud are working on the information that you have given them ‘in the background’ as it were.
This process can take several years for them to collate the evidence before, hopefully, deciding to prosecute the offending company/directors. Don’t despair as I’m sure that when they have/need further information, they will contact you.
Best Regards.
Mark