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".
Allansons, the solicitor firm behind an unregulated investment scheme offering potential 50% returns within a 6-18 month timescale, has been shut down by the Solicitors Regulation Authority.
According to The Bolton News,
The Solicitors Regulation Authority took the decision to close Allansons Solicitors, which had been operating out of an office Queens Buildings in Central Street, after ruling that its manager, Roger Allanson, had failed to comply with a number of regulations.
The sole partner of Allansons LLP, which runs an unregulated investment scheme offering returns of 50% within 6-18 months for investing in litigation funding, has been fined £17,000 (plus £10,000 costs) and been prohibited from acting as a manager or owner of an authorised solicitor over client money breaches.
Roger Allanson ran Allansons LLP as a sole practitioner until 2006, when he was joined by Mohamed Patel.
On 19 and 20 December 2018, the Solicitors Disciplinary Tribunal heard a series of allegations against Roger Allanson and Mohamed Patel in regard to their conduct over a period of six years:
Earlier today we reviewed the Allansons / Mortgage Audit Services opportunity to invest in litigation funding.
Allansons / MAS project a potential return of 50% should their cases succeed, and your money back if it fails via After The Event insurance - assuming that Leeward Insurance of Bermuda, the ATE insurer, agrees to pay the claim and has sufficient resources to do so.
Allansons' / MAS' literature is clear that this investment is not covered by the Financial Services Compensation Scheme. However, there are unregulated third party introducers promoting this investment as "High Returns with insurance and FSCS protection" and claiming that - via convoluted logic which we will review below - that the investment is covered by the FSCS, contrary to Allansons' / MAS' literature.
Allansons LLP, in association with Mortgage Audit Services Limited, are offering investors the opportunity to invest in "litigation funding" whereby investors fund the cost of legal action on behalf of a mortgage customer who has been overcharged by their lender due to "automatic capitalisation" of payments in shortfall.
Should the case succeed, Allansons promises a return of 5% of any award plus 30% of Allansons' base legal fees, which they estimate will provide a return of "approximately 50% on your money within 6 to 18 months."
Should the case fail, Allansons promise that your investment is covered by After The Event insurance.
Continue reading for a review of Allansons' / MAS' litigation funding opportunity.