Fraudulent investments? 21 May 2018 at 9:11AM in Savings & Investments 114 replies 19.4K views

M.Elliott

Thank you eskbanker, reading it back now i see my mistakes, would look pretty unprofessional if I sent it like that!

[Deleted User]

The only thing I would add is that your parents are x age ( presumably elderly ) and went along with their life savings of £165,000 looking for investment advice appropriate to their risk adverse status.


I used to be a regulated advisor and we were always told to be uber careful with the elderly as they don't have the time to benefit from higher risk longer term portfolio's , the exception being if they were investing on behalf of grandkids etc in which case it was written in the reports.

redpete

I would also advise keeping the initial letter very simple, concentrate in the poor and inappropriate advice to put the majority of their savings in these investments. Don't give them the opportunity to dispute details (e.g. whether or not the advisor said it was safe, or that 95% was protected, or whether your parents were advised of the level of risk...). I would probably leave out the list of what you want them to do, just say you expect a response to the complaint within the 8 weeks.

Malthusian

M.Elliott wrote: »

This financial adviser is a well respected man around town, has been in business for many years and is a family friend.

Most people who make money in dodgy unregulated investments have lots of family friends. If he was a socially awkward loner no-one would have given him their money. Not via face-to-face channels anyway.

Why did he give them such poor advice?

££££££££

Also it turns out he was in Panama on business a few months ago which is where privilege wealth have their base I believe, wonder why he needed to go there.

People like this don't need a specific reason to go on a free holiday paid for by your parents' money.

dealer_wins

The "financial adviser" or fraudster as I would call him is no family friend OP imo!! Sounds like he got a big cut and was in on what was basically a scam.

[Deleted User]

Is he actually a fraudster though, what he did was invest inappropriately rather than run away with the money or spend it on a Ferrari.


The trouble with what's happened is that he has preyed on the vulnerable and its so easy for him to explain away his actions, who knows what he has asked the Parents to sign confirming their intent. As a lot of the decision taken seems to be based on him being ' a nice man' it seems unlikely that parents would have asked many questions.


Its a mess and I really hope some of these funds can be recouped.

M.Elliott

That is more my thoughts BBH123. My parents are just completely green to anything financial and he could talk the talk, they knew him and trusted him and I suppose they fell for his chat. I hope beyond they get money back, the not knowing what will happen is extremely stressful for them.

[Deleted User]

I can imagine and for you aswell.


I really hate people like him because people go to him in good faith thinking he is a good man and will do right by them. How he can live with himself is beyond me.


if he did that to my parents I'd be out to ruin him tbh and social media is a good opportunity, can parents find any other
' victims' to build a case as someone like that IMO is unlikely to just strike once.

Malthusian

BBH123 wrote: »

Is he actually a fraudster though

Incoming Wikipedia alert: "fraud is deliberate deception to secure unfair or unlawful gain, or to deprive a victim of a legal right."

Deception: check ("these unregulated ultra-high-risk investments are 100% safe and nothing can go wrong")

Unfair gain: check (I think we can all agree that this is unfair, and it is pointless to argue about "unlawful" when he'll probably never see the inside of a courtroom)

Deliberate: meaningless

what he did was invest inappropriately rather than run away with the money or spend it on a Ferrari.

What he has done with the big fat wodge of commission he received from OP's parents' money has not been revealed.

But you don't gamble other people's money on unregulated investments for no reason.

M.Elliott

Yes stressful for all of us and unfortunately I don't even live near them, I'm leaving next week. Im so angry i could go happily go to his office and give him a piece of my mind but i dont think that would help anyone to be honest. I don't see anyway in which he can justify his actions to be honest and I'd like to think he will have to face up to what he has done. And yes you are right Malthusian, you do not indeed gamble people's money on unregulated investments. Thanks everyone for all the help, it's been invaluable and i will post an outcome when we have one for anyone who might be interested.