Hudspiths investors succeed in bid to force it into compulsory liquidation

102 creditors of Hudspiths have succeeded in having the company's voluntary liquidation converted to a compulsory one, in a bid to gain more insight into what the collapsed unregulated scheme did with their money.

Hudspiths was an unregulated forex scheme that launched in 2015 and promised returns of 5% per month, along with 2% per month to be paid to its introducers. The scheme collapsed in 2018 and filed for voluntary liquidation in June.

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Action Fraud call handlers call fraud victims “morons” and file most reports as non-crimes

An undercover investigation by The Times into Action Fraud has revealed

  • most reports are never followed up on
  • managers mocked fraud victims as “morons”, “screwballs” and “psychos”
  • victims were misled into thinking that they were talking to a police officer rather than an outsourced call centre worker, and led to believe their case will be investigated when most reports are never followed up on

Four Action Fraud staff members have been suspended.

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Curse of 2019 strikes again as Asset Life plc goes into administration

Asset Life plc, which raised £8 million from investors in its bonds, has gone into administration, according to reports. Confirmation of the administration was filed with Companies House on Wednedsay.

We reviewed Asset Life plc's bonds in January 2018.

Asset Life plc claimed to have an insurance policy in place which provided "Security of the Capital". Exactly what this insurance covers is yet to be made clear, but investment offering 8.75% per year to the public is fully insured against the risk of loss, and investors would be wise to manage their expectations.

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Harewood investors told to expect at least 84% losses

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The Telegraph reports that investors in Harewood Associates have been told by the administrators, Begbies Traynor, to expect at least 84% losses, with a possibility of total loss.

A spokesman for Begbies Traynor, the administrators, said: “The proposals issued to creditors anticipate a range of returns between nil and 16p in the pound. The return is subject to realisations of debts due from associated companies.”

With the amount left in these associated companies unknown, the standard rule for investors in collapsed unregulated investment applies; expect nothing and treat any recovery as a bonus.

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LCF investors unable to obtain evidence for their compensation claims, administrator reveals

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A brief interim update sent by the administrators of London Capital and Finance reveals that a number of investors have contacted Smith & Williamson in an attempt to secure recordings of phone conversations between the investors and LCF.

The purpose of requesting these conversations is virtually certain to be to support claims against the Financial Services Compensation Scheme, which has confirmed that it will compensate investors who received recommendations to invest from employees of LCF's marketing agent, Surge Financial, if they amounted to regulated advice.

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