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.

6 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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