A winding up petition against troubled unregulated investment firm MJS Capital (now Colarb Capital) is due to be heard on Wednesday 20th February.
A petition was originally filed by an MJS creditor on 23 October 2018 and due to be heard on 23 January 2019, but this was delayed and eventually rescheduled to next week.
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.
A job advert posted on the learn4good.com jobs board by EcoCrops International is looking for applications from "greedy and driven professional salespeople". EcoCrops International launched in 2018 and offers projected returns of 17.19% a year for investing in Estonian forestry.
Position: Sales Professional
EcoCrops International are looking for hard working sales people. We pay a small basic but great commission. No cold calling or face to face selling. The work is office based and would suit greedy and driven professional salespeople that are based in Palma Mal
The advert says that prospective applicants should also have a high school education, and minimal work experience is required. Applications should be English speakers, well educated and computer literate.
Cauta Capital issues unregulated bonds paying 7-11% interest with a 10 year term.
The company has recently filed its accounts for the year ending April 2018. Due to Cauta's small size, they were unaudited and did not include a profit and loss account.
The accounts show net assets of £70 million, consisting predominantly of £70 million of investments under "Fixed assets" (described later as "a portfolio of listed shares"), a further £7 million of current assets, minus £7 million of creditors (i.e. bondholders). Which seems like a pretty healthy financial position.
The accounts however immediately raise the question; where did this £70 million in investments come from?
London Capital & Finance has gone into administration, with four practitioners from top-10 accountancy firm Smith & Williamson appointed as administrators.
According to a FAQ on the LCF website, LCF applied for the administration itself. After the FCA froze the company's assets and censured LCF for persistently misselling its high-risk unregulated bonds to retail investors,
3. As a result of the above, LCF has been unable to raise further monies from investors.
4. Professional advice was sought and the Company was advised that LCF was insolvent and that it should be placed into administration to provide the best outcome for Bondholders and other creditors. The Company was also advised that in order for some independent party to be able to deal with the Company’s assets for the benefit of the Bondholders and the other creditors that the directors should place the Company into Administration such that the Administrators could perform those essential functions. As LCF is an FCA regulated firm, the consent of the FCA is required for the directors of LCF to resolve to place the Company into administration. Accordingly, the consent of the FCA was duly sought and obtained.
The news broke on the Smith & Williamson company website yesterday. The news seems to have crashed Smith & Williamson's servers, as the smithandwilliamson.com website is unresponsive at time of writing.
The Financial Conduct Authority has published a "Second Supervisory Notice" on 17 January setting out the reasons why London Capital & Finance was ordered to withdraw all its marketing materials in December.
It's been nearly a year since MJS Capital (known as Colarb Capital since October; to avoid confusion, for the rest of this article we will continue using their original and less silly name) started to fail to pay investors' interest and capital on time, something it has blamed on "banking issues".
Investors are now being told that to receive their funds back, they must switch from MJS' bond series 3 or 5 to Colarb bonds series 4. Investors have been promised that if they do, quarterly interest payments will resume and they will receive their (already overdue) capital back after a year.