Magna Global in default, investors say

Magna Global has defaulted on interest payments to investors and written to investors to say that their loans may not be repaid, according to The Mirror.

The Mirror’s article was based on the story of a couple who invested £950,000 with Magna Global, and are now unable to repay their mortgage.

A year ago, in an update to investors, co-owner Chris Madeline stated “we are extremely happy with the success of our loan notes this year”. This was despite Magna Investments X (aka MIX1) posting a £1 million loss for the year ending June 2019. MIX2 is due to fil accounts by the end of this month.

The same update promoted a new tranche of bonds paying 10% in the first two years and 18% in the third and final year.

Magna Global’s bonds were misleadingly promoted by unregulated introducers claiming they provided “asset backed security”. I reviewed Magna’s bonds in November 2018 and noted that they were in reality inherently high risk.

16 thoughts on “Magna Global in default, investors say

  1. Same position as the lenders in the Mirror newspaper article. I lent a substantial sum that was due for repayment in February 2020. Didn’t see a penny of it.

    Chris Madelin and his business partner Oliver Mason, who ran Magna, have proven to be charlatans. Chris Madelin has completely disappeared and does not reply to anyone.

    He has ran Magna into the ground while milking enormous amounts from the business for his extremely lavish lifestyle (Lamborghini and designer clothes) and that of his girlfriend who is an Instagram wannabe-star (who is regularly gifted £20k handbags etc. by Chris).

    It’s only in the UK that folk like Chris Madelin can milk tens of millions of pounds from people and not repay with impunity.

    The Security Trustee, Equity for Growth, have been beyond abysmal, and have literally written a ‘blank cheque’ by their director to enable Chris Madelin and Oliver Mason to do whatever they want and spend the borrowed money however they like.

    As the Security Trustee they obviously have a fiduciary duty to look after the interests of lenders in this scenario, but they are completely AWOL: they never picking up the phone, answering emails or answering form completions on their website.

    They’ve been reported to the FCA by Magna’s lenders and as soon as Equity for Growth are closed down the better – but that will never happen in this country that is a Paradise for Ponzi schemes and their backers whom’s pockets they line.

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  2. Hi, I’ve been asked to do some investigation work for a client of mine that invested via Hunter Jones in Magna, which has lead me here.
    From what I can see so far, Hunter Jones had FCA Appointed Rep status from Equity for Growth, the same company that provided the Security Trustee.
    The paperwork and brochures that accompanied the investment offering also had Hunter Jones logo and details on them, surely this, along with what I read above, smacks of some sort of concerted effort to defraud clients?

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  3. If Hunter Jones (now called Osbourne Baldwin Ltd) were authorised at the time and advised your client to take out an unsuitable investment then they may be in line for help from the FSCS. It will depend on your client’s circumstances and what they were told.

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  4. Much like Hennesy Jones. Manga has been the victim of the regulators and creditors who don’t understand the position. It’s a real shame to see a great company go down.

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  5. If Bob borrows several million quid from Alice and a couple of years later the money is gone and Bob can’t pay her back, it’s not Bob who is the victim.

    As it stands Magna Global continues to be an active trading company, defaults and negative net assets notwithstanding, so your claim that they have “gone down” seems premature.

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  6. Is there a MIX2 victims group? Has any LNI (loan note investor) set charges against Magna to date given the dire circumstances this outfit are in?

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  7. I also would like to know this. I am not in the position to start such a group, but am in favour of joining one and supporting. I am elderly and in poor health

    Liked by 1 person

  8. Dear Mark Emery,

    I have only just came across your comment.

    Unfortunately no matter how many times I requested hunter jones and magna they ignore all my emails. If possible could you share the investment brochures you have which shows hunter jones logo on their investment brochures please?

    please email it to davidescobarr19@gmail.com

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  9. Hi, 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 and I know they were looking at a Woking option but I just head today that has been sold and the company will likely be going into insolvency.

    Hence I was also wondering in there was a victims group at all or if anyone had been able to take any action per the information above from Mark Emery as I wasn’t aware of that?

    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.

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  10. Hi Helen white,

    Where have you heard that the company is going to become insolvent.

    I haven’t had any correspondence detailing the outcome of the resolution.

    Kind regards,

    David

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  11. Hi David – I received the following email this afternoon from Hunter Jones….

    Dear Helen,

    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.

    I had reached out previously to all my contacts and connections to help bring this Magna loan note to a positive close but without viable assets to work with our options are limited.

    We are awaiting further information and details on the next stages like yourselves.

    Any information we receive we will continue to share with you.

    I will be in touch in due course.

    Kind regards,

    Reece Mennie

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  12. Dear Helen,

    Reece is a complete nob including everyone else at hunter Jones.

    I haven’t received a single piece of information from Reece or hunter jones even whilst they have been my introducer.

    Is it possible you forward that email to me on

    Davidescobarr19@gmail.com

    Kind regards,

    David

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  13. I have invested in MixG and never got any correspondence from my introducers – who were – not sure if any of you guys know them or dealt with them – but I have never heard thier names in any of the thread involving magna – it’s a company called emerging development owned by Andrew Davidson – who seems to be stationed in spain.
    It seems they have also stopped updating him with anything not sure where to get info from or how to be in the loop beside these group here.

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  14. My husband and I are devastated beyond belief at today’s news of complete write-off of ALL investors money. We’ve lost most of our life savings.

    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.

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  15. Check out the Magna Creditors facebook group – you have to prove your loan certificate to be admitted. Please join we need more members!!!!

    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

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