Safe or Scam LLP, an American introducer which brings together investors in collapsed investments and insolvency practitioners / lawyers, has claimed in an open blog published on Monday 5 August that Carlauren has not appointed administrators, contrary to a statement from Carlauren in late July.
Carlauren claimed on 23 July that it had "instructed administrators", and that "a full update with procedures and next steps will be distributed tomorrow". A number of media outlets, including Bond Review, took this to mean that the company had gone into administration, especially against the background of Carlauren's widely documented financial problems.
Safe or Scam however states:
This led to a number of media outlets picking up the story and reporting that Carlauren Group was in administration. It was not. As of today’s date it is still not in administration. We do not know why Carlauren Group would choose to mislead investors like this. We can only assume it was because they knew the use of the word “instructed” has no meaning in relation to an administration. The important word is “appointed” and Carlauren Group did not appoint any administrators. We can only assume this was a stalling tactic designed to prevent investors from combining to appoint an administrator. Carlauren was trying to buy time. As far as investors are concerned the only company in administration which is relevant to them is Accordiant Ltd. That company is the one which owes the rental payments.
Troubled unregulated investment firm Carlauren, which ran unregulated investments in care homes, hotels and its flopped cryptocurrency C-Coin, has appointed administrators, according to a letter sent to investors yesterday.
Bond Review reviewed Carlauren's care home investment in April 2018 and concluded that the investment was an extremely high risk investment in a small company (the promise to pay investors a fixed 10% per year made Carlauren's opportunity an investment security in Carlauren itself, not a property investment). Contrary to claims in Carlauren's literature that their investments "dispelled the myth" that "great investment comes with great risk".
Carlauren's defaulting on promised payments to investors and subsequent appointment of administrators confirms that investing in a small unlisted company like Carlauren was the definition of a great risk.
The Northern Echo has revealed, after digging into Land Registry documents, that Carlauren Group has sold a total of 37 apartments in Windlestone Hall for over £6 million. None of these apartments have yet been built.
Carlauren Group is not having an easy time lately. Added to its failure to raise more than a few thousand from its C-Coin care home cryptocurrency, it was temporarily unable to pay staff at the care home from which it was busy evicting elderly residents, and has also had to put plans to build an Ibiza-style beach club on the Isle of Wight on hold.
Previously we have reviewed Carlauren Group's care home investments offering 10% per year and Carlauren's C-Coin cryptocurrency investment, which Carlauren claims will jump in value by 170% as soon as they have sold £35 million worth (current sales as at April 2019: £3,290).
Carlauren hasn't been particularly happy with my coverage, previously sending its former Head of Marketing into the comments to make vague accusations about "significant inaccuracies" without actually pointing any out.
Their unhappiness has now escalated into perjury.
Back in February I reviewed the Carlauren Group’s C-Coin cryptocurrency investment. C-Coin investors hand over £70 per C-Coin and can then use those C-Coins to either buy care services from Carlauren, or cash them out on an exchange. Carlauren claims investors in C-Coins can expect “an increase in their core value”.
The BBC’s technology correspondent Rory Cellan-Jones has recently reviewed the C-Coin as well. Unlike myself, he went as far as to join the exchange and buy a coin. There he found there was an “offer on market” to buy C-Coins for £189, despite investors being able to buy them at the offer price of £70. He attempted to buy a coin for £70 and immediately sell it for £189 but unsurprisingly failed to do so.
He then received an email inducing him to buy more C-Coins on the basis that they could be bought for £70 and sold at the “market price” of £189.
Carlauren Group (aka The Care Home Group, whose care home investments offering fixed returns of 10% per year were reviewed here in April 2018) has entered the cryptocurrency arena with the launch of "C-Coins".
How it works is as follows:
Investors and those wishing to buy Carlauren's care home services hand real money over to Carlauren in exchange for tokens at a launch price of £70 per C-Coin. Members of the Carlauren Resorts programme have the right to buy a specified number of C-Coins at the launch price depending on what tier of membership they join at.
Investors and members can either use their C-Coins to pay for Carlauren's residential and care home services, sell them back to Carlauren at a "guaranteed" £63 per coin (90% of the launch price), or sell them on an internal exchange operated by Carlauren, known as the Carlauren Coin Exchange.
Going forward C-Coins will be the only method of payment accepted by Carlauren for its services.