A Freedom of Information request made by The Telegraph has revealed that the City of London police warned the Financial Conduct Authority 45 times over the activities of Blackmore Bond starting in 2018.
According to a freedom of information (FOI) request submitted by The Telegraph, the City of London Police, which is the national police lead for fraud, first alerted the FCA to events at mini-bond provider Blackmore in 2018, 18 months before it eventually failed.
It subsequently highlighted problems at the company 44 times prior to its demise in April 2020. The majority of those warnings occurred in February and March of that year.
Nearly four months after the original announcement, the Treasury has finally announced that any London Capital and Finance investors who have not been refunded via the Financial Services Compensation Scheme will be bailed out almost in full by the taxpayer, up to a £68,000 cap. Around 8,800 people are expected to be eligible.
In a sop to fans of moral hazard, the new scheme will refund up to 80% of the original investment, minus any interest payments or dividends from the administration. Having faced near total losses for over two years, it is unlikely investors under the cap will be too upset by a 20% haircut. A smaller number of investors who invested significantly more than the cap could be facing very large losses: we are meant to assume that they were too rich for us to empathise with, but there could easily be first-time investors of middling or modest means who invested pension lump sums or inheritances.
The FCA will also make "ex gratia" payments to some investors who contacted it before the collapse, some of whom were told by FCA call centre staff that their investments in LCF were covered by the FSCS. More with-it call centre staff who attempted to protect investors and raise concerns were slapped down by FCA management.
FLF Litigation Services (formerly known as Fortress Legal, Litigate Aid and Robert Dodds Watches), whose bonds were reviewed here in August 2019, has been issued with a strike-off notice by Companies House for failing to file accounts for December 2019 on time.
Unless the strike-off notice is cancelled, e.g. due to an objection from a creditor, in June FLF Litigation Services Limited will be dissolved and all its assets will pass to the Government.
Worryingly for investors, FLF Litigation Services' failure to file accounts (a criminal offence) appears to be part of a general pulling down of the shutters.
The Serious Fraud Office announced last week that it is investigating "suspected fraud in relation to the activities of the Raedex Consortium, including the companies Buy2Let Cars, PayGo Cars, Raedex trading as Wheels4Sure and Rent2Own Cars".
One individual has been arrested and another interviewed. Two residential properties were searched.
The identity of the individual arrested, and why the SFO suspects fraud may have occurred, is yet to be revealed.
The administrators of Basset & Gold, the collapsed unregulated investment scheme promoted by West Ham FC, have released their latest update.
Basset & Gold's funnelled investor funds into payday lender Uncle Buck, via an intermediary shell company, River Bloom UK Services (aka RBUK).
The bad news for investors is that the administrators predict total losses, regardless of how much is recovered from Uncle Buck, due to another River Bloom company, registered in Cyprus, outranking Basset & Gold investors.
Osmai FX claims to provide a "reliable alternative investment opportunity" that generates returns from Forex trading.
In a video and performance table on their website, the scheme claims to have generated 42% annual returns since 2016. It also claims to offer "medium to long-term growth with minimal risk" and "slow and steady returns".
for a review of Osmai FX's forex investment.
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.