A financial investment company, which claimed to offer a low-risk ISA fund and promised investors returns on each investment, collapsed earlier this year, owing 11,500 investors £237 million.
In December 2018, the Financial Conduct Authority froze the company’s bank accounts and ordered it to withdraw its promotional material, as it was deemed to be misleading.
Following investigations, a collection of disparate assets was found around the world, all linked to loans made by the company. No efforts were made by the company to confirm the value of the companies taking the loan, or their ability to repay.
It has since been revealed to investors that these investments did not qualify as an ISA and were high-risk bonds.
The complex web transactions were unveiled this week, disclosing that millions of pounds of highly suspicious transactions were linked to the personal possession or control of individuals linked to the company.
If you have concerns regarding the legality of financial transactions in your business, contact us today at Audley Chaucer.
Written by Syeda Anjum