London Capital and Finance

GDB2222

Malthusian wrote: »

Because he's in receipt of £85,000 a year that came from a Ponzi scam.

Unless it can be shown that Crucial Academy Limited has sufficient revenue from sources other than the commission paid by London Capital & Finance to its sister company to pay £85,000 a year to a dodgy MP along with all its other running costs.

I have no idea why Careless would set up a company to lose money deliberately? Kindly explain what purpose this serves?

Of course, there might be something nefarious going on, but the DM has failed to uncover it.

bail-in

https://www.theguardian.com/money/2019/apr/06/too-hot-to-handle-dont-be-burned-on-p2p-or-mini-bond-loans#ampshare=https://www.theguardian.com/money/2019/apr/06/too-hot-to-handle-dont-be-burned-on-p2p-or-mini-bond-loans

CalvinHobs

The MP referred to in the DM article is not the only MP with links to people/companies connected to LC&F. Some familiar names/faces in this article...


£30m Bodmin resort among series of collapsed deals


Searching for the above should return the article from Cornwall Live. Sorry, as a newbie, I'm not allowed to post links.


The deal referred to in the article - "SinoBritish Waterside Villages" - was struck in August 2015. That deal fell through. Wasn't it shortly after this that LC&F mini-bonds started appearing in search results for "best rate ISA's"? Subsequently, LC&F extended loans of more than £20m to Waterside. To be precise - £20,817,496 - as reported by the administrators.


I'm not suggesting that either MP has down anything wrong, of course - but it does seem worthy of remark. Is it possible that a former Conservative councillor would use his party connections to lend an air of credibility to his business ventures? Hypothetically speaking, that is.

rr755507

GDB2222 wrote: »

I have no idea why Careless would set up a company to lose money deliberately? Kindly explain what purpose this serves?

I cannot see anyone suggesting this at all.

But to me, it seems unlikely a company this young in this sector was already in profit and wasn't bankrolled by £60 million 'earned' from the LCF ponzi.

GDB2222

Links - my point is that we are all linked to this somehow or other. Captain Careless's cleaner and gardener were all paid out of the commission he got from LCF. The garage that sold him a flashy car, If you shop at the same store, that's a link. The DM article is trying to throw mud, but they could not find any.

Malthusian

GDB2222 wrote: »

Links - my point is that we are all linked to this somehow or other. Captain Careless's cleaner and gardener were all paid out of the commission he got from LCF.

Careless' cleaner and gardener don't provide £85,000 a year worth of legitimacy by association and promote his business.

GDB2222

Malthusian wrote: »

Careless' cleaner and gardener don't provide £85,000 a year worth of legitimacy by association and promote his business.

That's a good point for anyone here who bought an LCF bond because there was an MP on the board of the academy.

This reminds me of the DM trying to slur the London mayor, Sadiq Khan. They showed a picture of him and a militant Muslim standing on the pavement. They weren't conversing, and they weren't even looking at each other, yet the DM said there was a case for Khan to answer. The photo seemed to show them a couple of yards apart, but with a telephoto lens they could have been 50 yards away from each other. But some people lap up this nonsense.

Malthusian

GDB2222 wrote: »

That's a good point for anyone here who bought an LCF bond because there was an MP on the board of the academy.

You jest, but funnily enough another, smaller Ponzi scheme that collapsed last year, which was connected to LCF via the man that brought Surge and LCF together, had a member of the House of Lords on its board. A number of investors specifically said that they thought that if a member of the House of Lords was on the board it must be legit. How much of their funds his Lordship received for serving as a non-exec director is unknown. The Lord in question jumped ship shortly before the scheme's collapse and is not suspected of any wrongdoing.

It all adds up, and having an MP on your payroll opens certain doors, it's not just about PR. Do you seriously think that they pay £85,000 a year to an MP just for the pleasure of his company?

This reminds me of the DM trying to slur the London mayor, Sadiq Khan. They showed a picture of him and a militant Muslim standing on the pavement.

If the militant in question was paying Sadiq Khan £85,000 a year to serve on the board of his madrassa there's a chance that might have some kind of relevance.

CalvinHobs

Unless evidence is provided to the contrary, we are obliged to accept that any MPs connected with LCF/Surge acted in good faith. Innocent until proven guilty and all that.


However, if it was me, once I knew how LCF/Surge had operated, I would not sleep easy at night. Even if I had done nothing illegal, it would not sit right with me. Then again, I'm not an MP - just an ordinary punter.


Btw, does it not seem ironic that Surge paid £85,000 to the MP? Exactly the same as the maximum protected under FSCS - which the LCF mini-bonds were not. A coincidence no doubt, but it almost seems like someone's idea of a sick joke.

Reaper

I wonder if the MP invested his own money in an LCF bond, and if not why not?