The interminable saga of London Capital and Finance returned to the newspapers this week when John Glen, secretary to the Treasury, provided an update to the Sunday Telegraph on the announcement that the Treasury would set up an ad-hoc compensation scheme to compensate LCF investors who have so far missed out.
The update, three months after the compensation scheme was announced at the cig-end of 2020, is that there is no update at all.
In another blow for Buy2letcars investors, the Financial Conduct Authority revealed yesterday that the whole scheme has gone into administration, less than a month after the FCA effectively stopped the scheme from taking in new investor money.
All three of Buy2letcars' constituent companies: Buy 2 Let Cars Ltd, Rent 2 Own Cars Ltd, and the holding company Raedex Consortium, went into administration on Tuesday 15 March, with RSM Restructuring Advisory appointed as the administrators.
The administrators of collapsed minibond scheme Asset Life plc have released their latest six monthly report.
Unfortunately there's been little reportable progress, with the two investments that form the ashes of Asset Life plc, Kyrgyzstani gold hunter Aprelskoe and Armenian metal grubber Lori Iron and Steel, continuing to blank the administrators. The administrators continue to attempt to extract blood from both stones but say they "do not anticipate material realisations in this regard".
The administrators of collapsed cryptocurrency bond scheme Viderium have released their initial report.
Following last week's FCA shutdown of new investment into Buy2LetCars, Smith & Williamson has unceremoniously dumped CEO and owner Reginald Larry-Cole from an "Entrepreneur's Hall Of Fame".
Google's cache shows that on Friday 19th, the day of the FCA's intervention, the hall of fame entry was still up. But at some point after this it was quietly removed.
Redhat Group claims to provide an "FCA Approved Managed FX Account" which "rewards our clients with above average returns by utilising our sophisticated Redhat Trading Platform."
Past performance data on Redhat's website claims that their investment delivered returns of 146% in 2019 and 153% in 2020.
There is also a live webpage on Redhat's website offering a "Loan Note" paying 24% over 24 months, although it is orphaned (i.e. not accessible from the main website and only reachable with a Google search).
for a review of Redhat Group's forex investment.
Figures published by Money Marketing last week indicate that so far the FSCS has paid out £56.3 million to 2,878 investors in FCA-authorised Ponzi scheme London Capital and Finance.
At around £19,500 per investor, that's pretty typical of the average total investment.
Apart from £2.7m for investors who transferred a stocks and shares ISA, the vast majority of that was paid for LCF giving misleading "advice". Despite not being a financial advice firm, not being authorised to give financial advice, and employing no financial advisers, Financial Services Compensation Scheme levy payers, i.e. the general public, have been put on the hook on the basis of "I'd advise my own mother to invest in this" school of salesmanship.
After over 8 years in operation, the Buy2letcars investment scheme has been closed to new investment by the FCA.
A "first supervisory notice" placed on Buy2letcars' parent company, Raedex Consortium, prohibits the company from carrying out any regulated activities other than collecting payments on vehicle leases that were already in place.
Buy2letcars solicits investment via social media and radio ads from the public, whose money is used to purchase a car to be leased out to a borrower. As the investment is unregulated, the FCA does not technically have the power to stop Buy2letcars taking in investment. However, FCA does have the power to stop Buy2letcars arranging new vehicle leases, and if Buy2letcars can't arrange new vehicle leases, it can't take in new investment as it can't do anything with it.
Bentley Global has filed accounts for August 2019, 5 months overdue (even after allowing for the Covid 3 month extension). In doing so it has earned a reprieve from a strike-off action issued by Companies House in November and suspended the following month.
Bentley Global's August 2018 accounts showed that it had raised £4.8 million in its bonds paying 12 - 20% per year. That figure swelled to £8.6 million by August 2019.
Independent Portfolio Managers facilitated two minibond investments which collapsed back in 2015 and 2016, Secured Energy Bonds and Providence Bonds, losing in the region of £8m each.
IPM was finished off by the zombie corpse of its former customer, after the administrators of Secured Energy Bonds put it into administration seeking £5.6 million.
The liquidators have now issued their second progress report.