Looks too good to be true

Flobberchops wrote: »

Fixed that for you!

If you're willing to take some risk, you could get better than 9% by investing in P2P - with the added benefits of not being tied to a 5 year term, being able to diversify between several loan parts, and not having the high minimum buy-in of £5000.

I see you, Flobberchops, the poster of the above, work for a UK bank. One of the problems with dodgy or not so dodgy investments is the inability to verify how and what the capital investment loan is being used for. How can a non investor and or an investor in a company loan find the bank account details where investor bond funds are paid and then what happens to them to verify that the company is doing what they say they are doing? Follow the money as they say! I read here in earlier post that the Santander scam team had been contacted re Dcr investment and the team said there were no funds in the account. So banks can give info out about customer accounts, albeit limited. So how does one trace the money trail to aid prevention of loss of investment capital? Probably not likely if I answer myself. Any suggestions? Can help to see if a company invested in is genuine or not. Some companies and directors offering unregulated mini-bonds recently failed were found to have misused the investment funds, ie. not used for stated investment purpose to raise investor interest. Even the legally required corporate trust independent trustees do not know during investment term what the capital investment is used for. So what chance have investors of tracing? Any suggestions?