Adelpha Bond files accounts, says no money taken in

In November 2018 I reviewed Adelpha Capital which was offering bonds paying up to 7.6% per year via the company Adelpha Bond plc.

In June 2019 Adelpha Bond plc converted to a private Ltd company. It has now filed accounts up to October 2019 which appear to suggest it has taken no money in and made no trading activity; its accounts show nothing other than the £12,500 in paid share capital it was set up with.

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FSCS announces compensation for only 159 London Capital and Finance bondholders

London Capital & Finance logo

The hopes of most victims of FCA-authorised Ponzi scheme London Capital & Finance were dashed last week when the FSCS announced it would not compensate them on the basis of having received misleading advice.

It said that investors had merely been given incorrect information, which doesn't generate a liability that is covered by the FSCS' "protected business" rules.

That the FSCS has eventually taken this decision is disappointing for investors but ultimately not surprising. London Capital Finance was not authorised to give advice to retail investors, employed no qualified financial advisers, and its call centre staff were generally trained to avoid crossing the line from information to advice - as in any other non-advisory finance company. (Although some went off-piste and crossed the line into the "I'd tell my own mother to invest in this" school of advice.)

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Blackmore Bonds – the important questions answered

Blackmore logo 2019

Troubled minibond provider Blackmore hit the news again over the Christmas period after missing a third consecutive interest payment and falling overdue with its annual accounts.

Rather than regurgitate the last two articles, we’ll examine the important issues in depth.

Q: Why has Blackmore stopped paying interest?

A: Blackmore has defaulted on three quarterly interest payments, starting in August. August’s was eventually paid a week late; Blackmore blamed a clerical error.

September and December’s payments remain unpaid. Blackmore has now blamed Brexit and delays in selling property.

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Unregulated Irish pension trustee threatens to foreclose on Dolphin Trust; fallout hits South Korean banks

Unregulated German property scheme Dolphin Trust (now known as German Property Group; for clarity we will continue to use its less unnecessarily generic name) continues to struggle with repayments, according to media reports.

Wealth Options Trustees, an "investment wholesaler" based in Kildare, Ireland, has threatened to foreclose (presumably on behalf of Irish pension investors) in the event of non-payment.

Dolphin Trust's CEO Charles Smethurst has admitted to "short-term cash-flow difficulties" according to WOT.

Dolphin Trust's short-term difficulties started in the latter half of 2018, according to unpaid investors who spoke to the BBC last year.

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Store First assets sold by Official Receiver to Toby Whittaker’s wife

According to the Lancashire Telegraph, the Official Receiver has sold the freehold, associated assets and goodwill of Store First's 15 storage centres to Store First Freeholds Limited.

The assets of the service company, SFM Services, have been transferred to Pay Store Limited.

Both Store First Freeholds Limited and Pay Store Limited are wholly owned by Jennifer Whittaker, reportedly the wife of Store First CEO Toby Whittaker.

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Harewoods administrator revises expected losses from 84% to 93%

Harewood Associates Logo

The administrators of collapsed unregulated property investment scheme Harewood Associates have released their latest update.

Harewood Associates raised £32m by advertising bonds and preference shares directly to investors. The scheme collapsed into administration in June.

In their initial report, the administrators wrote off £36 million of the £40 million which Harewood Associates lent to linked companies, including £17 million loaned to Harewood Venture Capital and £19 million loaned to Sherwood Homes.

The administrators have now also written off a further £1.2 million from the "Equiscale" investment and £1 million owned by a company called Southworth Construction (owned by a James Cuniff).

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