LC&F -- Help! 😢

David_Evans

AnotherJoe wrote: »

If you look at the original / main LC&F thread at post 15 it's clear there was something you had to certify, probabiy a tick box saying you qualify that you just ticked without reading the linked details, where you agreed you wouldn't be putt8ng more than 10% your investments into this scheme.



Only if the company was a disguised ponzi scheme using new investors money to pay off old investors. Otherwise the income from all their investments would continue to flow in and they would be able to carry on.

Had the authorities taken action sooner maybe you wouldn't have been suckered in and by taking action now, even if late, they've prevented further people falling for it.

But the funds couldn't flow out again.
So the company couldn't operate - could it?

AnotherJoe

David_Evans wrote: »

But the funds couldn't flow out again.
So the company couldn't operate - could it?

Why not? In that scenario its got tons of money coming in from all the companies it invested in, all accumulating whilst waiting for the administrators to confirm everything is OK.

In the meantime it doesn't hurt LC&F not to pay Silly Shirl her 8% interest every quarter it can pile up in a bank account waiting to go out once they discover that LC&F didnt squander all their money on sponsoring horse eventing, paying commission to get new investors, paying large salaries to the directors, and that the oil companies and holiday villages they "invested" in, if they arent repaying the loans, have so much money in their bank accounts & assets that LC&F can easily be recompensed.

Or, perhaps, not.

David_Evans

AnotherJoe wrote: »

Why not? In that scenario its got tons of money coming in from all the companies it invested in, all accumulating whilst waiting for the administrators to confirm everything is OK.

In the meantime it doesn't hurt LC&F not to pay Silly Shirl her 8% interest every quarter it can pile up in a bank account waiting to go out once they discover that LC&F didnt squander all their money on sponsoring horse eventing, paying commission to get new investors, paying large salaries to the directors, and that the oil companies and holiday villages they "invested" in, if they arent repaying the loans, have so much money in their bank accounts & assets that LC&F can easily be recompensed.

Or, perhaps, not.

How could LCF make any payment to anyone - if their accounts are frozen?

masonic

AnotherJoe wrote: »

Why not? In that scenario its got tons of money coming in from all the companies it invested in, all accumulating whilst waiting for the administrators to confirm everything is OK.

In the meantime it doesn't hurt LC&F not to pay Silly Shirl her 8% interest every quarter it can pile up in a bank account waiting to go out once they discover that LC&F didnt squander all their money on sponsoring horse eventing, paying commission to get new investors, paying large salaries to the directors, and that the oil companies and holiday villages they "invested" in, if they arent repaying the loans, have so much money in their bank accounts & assets that LC&F can easily be recompensed.

Or, perhaps, not.

It's been established in the main LCF thread that at least 20% of the money lent was retained by LCF. This probably includes retained interest. That 20% was then paid out to companies like Surge Financial, so it is beyond the reach of LCF and the administrators. When loans are made with retained interest, borrowers might not have to start making monthly repayments for quite some time, so it is unclear whether any of the borrowers were making repayments at the time LCF entered administration. Since there has been no change in the number of borrowers over the last 2 years, but a huge increase in the amount lent, it seems that the borrowers were getting further advances of capital and perhaps using this to make any repayments that became due. Now the tap has been turned off, I wouldn't make any assumptions about money coming into LCF.

jimjames

David_Evans wrote: »

How could LCF make any payment to anyone - if their accounts are frozen?

They can't but administration wouldn't be required if the money was coming in

AnotherJoe

David_Evans wrote: »

How could LCF make any payment to anyone - if their accounts are frozen?

Who would they need to make payments to ? Administration would allow them to pay normal expenses such as wages and rent. Then there would be all the money coming in from their investments, and no money going out to the 11,000 bond holders. So, no problems. Well, no problems for a company that's solvent and doesn't rely on new "investors" money to keep the scam machine running.