79th Group Insolvency Fraud
A letter to investors in 79th Group was recently sent out on behalf of a few investors who have been taking insolvency action against 79th Group companies.
If you are a 79th Group investor and did not receive it please contact us and we will arrange to have a copy sent to you.
In brief, the letter invited investors to support three separate administration applications filed by three investors. These are administration applications, not winding up petitions. Winding up petitions were also filed by others, but they are now subordinate to the administration applications and will be dismissed.
Two of the winding up petitions were filed by a scam company specialising in attracting victims of fraud and making the investor pay to hand over a debt which actually has a value. It’s a con. We liken this approach to someone putting their car up for sale and when a prospective buyer turns up he’s not interested in buying the car. He wants the car owner to pay him to take the car away ! You wouldn’t do that with your car so why would you do that with your valuable debt ?
Furthermore, assigning your debt to a dodgy company, which doesn’t even have an office, when there is an ongoing Police fraud investigation which may lead to a recovery under the Proceeds Of Crime Act is just plain stupid. Investors are being conned into paying to hand over their rights to receive a distribution from the criminal case. Why would they do that ? It’s them that lost the money, not the company. Once assigned the debt belongs to the company, not the original investor so if / when there is a payout the money goes to the company and doesn’t go to the original investor. It’s a scam.
The letter to investors warned against paying any company at this stage. It is not necessary.
There are some routes investors could explore such as contacting Refundee if the investor paid from a UK bank to a 79th Group UK bank account and it was a GBP to GBP payment. There are other conditions but Refundee will advise on those. Investors don’t have to use a company like Refundee because they can do it themselves, but sometimes relying on a company’s expertise is worth the fee.
The letter also covered contacting Paul Muscutt at Crowell & Moring who is working with a lot of 79th Group investors on the administration applications. Any investor wishing to support their fellow investors should make contact and complete a form confirming their support. An administration is the best option for all investors not just the person who makes the application. They get no special treatment or entitlement.
Investors who have been told there is a viable action against Castle Trust and Management Services Ltd have been lied to. CTMS is in administration with no money and creditor claims of more than £50m against it. There is no chance of recovering anything but pennies from this company and its director.
With regard to T&T Trustees there is currently no evidence of wrongdoing and even if there was the contract makes it very difficult to hold the company liable to compensate investors. Going after the Security Trustees looks tenuous at best so ask for a written legal opinion before paying any company or assigning any debt.
It now appears that several 79th Group noteholder companies are heading into administration which is a good thing. Control of the companies will be taken away from the directors and put in the hands of licensed insolvency practitioners. Investors do not have to pay the insolvency firms and should not be paying any third party companies claiming they can help if investors pay them a fee. They can’t and investors would be wasting their money.
Any 79th Group investor who has paid a fee to an unregulated company should report it to the City Of London Police officers dealing with the case. They can do so via the link which is provided in an earlier article. Here is a LINK to that article. Alternatively, post the details here or drop us a line privately. You can ignore any threat the company might make about keeping all the details confidential. When you’re stealing money from people that’s exactly the kind of clause you’d put in a contract to stop the victim from reporting them. They won’t want their contracts analysed in court.
Please feel free to comment on this article. This is a forum for 79th Group investors to have their say.
Please scroll through our posts below to find previous articles we have written on 79th Group.
