The administrators of Carlauren Group have released their first report.
As previously covered, Carlauren Group holds a total of £21.7 million in properties going by their purchase prices (with one unknown), despite reportedly taking in £76 million from investors.
A £40 million asset freezing order has been placed on Carlauren owner Sean Murray. Murray subsequently filed for bankruptcy. Carlauren's administrators, Duff & Phelps and Quantuma, have been appointed as receivers and are investigating his personal financial affairs.
The administrators of Carlauren Group have released their initial report into a total of 25 Carlauren companies.
Carlauren Group was an unauthorised investment scheme which solicited investment in care homes for returns of 10% per year. It slowly and painfully collapsed in 2019, leaving a trail of building sites and traumatised vulnerable OAPs as it did so, after becoming unable to pay its liabilities.
Investors' money was in theory to be used to do up stately buildings and convert them into care homes. The administrators lay bare the reality: Continue reading...
With a few exceptions, investors in collapsed unregulated investment schemes generally find sympathy in short supply.
The media will occasionally print the hard-luck story of a someone who invested their entire pension lump sum, or an injury compensation payment, but the news cycle usually moves swiftly on.
At a court hearing in London last week, Carlauren Group was finally put into administration.
Lawyers for Carlauren investors alleged that Sean Murray transferred significant sums into his own personal account.
Murray responded that the money was accounted for and was just resting in his personal account.
Collapsed care home investment scheme Carlauren continues to resemble Wile E Coyote after running off the edge of the canyon, somehow still moving simply by refusing to acknowledge standing on thin air.
The demise of Carlauren was prematurely reported in July after the company wrote to investors to told them it had "instructed" administrators. In reality, it had only spoken to administrators, not appointed them.
Administrators Quantuma LLP have since been appointed by investors to some Carlauren subsidiaries, but have not yet established control over the group as a whole. Carlauren is trying to block Quantuma's appointment and have its own choice, CVR Global LLP, appointed instead. A court hearing has been set for 26th November.
Rancor continues to circle the crumbling Carlauren Group.
Carlauren, reviewed here in April 2018, raised money from investors promising 10% per year returns from investment in care homes. The company run out of money to pay investors in February 2019, and its collapse has meant frail and elderly care home residents being ejected with 24 hours' notice, and hotel properties left to rot.
On the public Facebook group Sandown Hub, a resident of Sandown noticed that one of its former introducers, One Touch Property Investment (officially One Touch Solution Ltd), was apparently continuing to sell units in its care home.
One Touch clarified that it was no longer selling Carlauren investments. In the ensuing thread, it revealed that it has approached a "fraud litigation solicitor" on behalf of investors to pursue Carlauren over "misrepresentation".
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.