Bad advice to invest in a movie and mobile app!

Mikee247

Hi everyone, I'm feeling pretty stupid really and dont have too much hope on any outcome with this but have decided to ask advice from people on whether I can make a claim for compensation against two bad investments that myself and colleague made some years ago. In brief, we were persuaded to invest a substantial amount of money into a movie that had been completed and also a mobile app game that was in the process of development at the time. Both have failed and even the movie that had a top cast and loads of potential went South basically because of the incompetence of the management company and its owners who of course have continued managing other films and taking people's money.  The individual company's attached to the investment opportunities have gone into administration and we were advised and persuaded/mislead by an investment broker to invest in these opportunities. Here lies my beef I think. They have not contacted us or been open to information. I understand all investments are a risk but £50k via 3 people and one company in these opportunities is quite a lot for all of it to fail and not investigate it more thoroughly. It is quite complicated but we want to see if we can hold the bad advice and information we received to account. Can anyone refer good specific lawyers or advisers that can look into this on our behalf or offer any information to where if any direction we should look at? Many thanks in advance. 

eskbanker

Mikee247 said:

we were advised and persuaded/mislead by an investment broker to invest in these opportunities. 

Is/was this broker FCA-regulated?

Mikee247

Im not sure I am looking into it now. I see this particular investment has a thread about it elsewhere with the same outcome unfortunately. We were heavily lent on for other projects and of course fell into the trap. I appreciate the fact we wont get our cash back but I want to check that their sales process and methods are legal. 

Mikee247

eskbanker said:

Mikee247 said:

we were advised and persuaded/mislead by an investment broker to invest in these opportunities. 

Is/was this broker FCA-regulated?

eskbanker said:

Mikee247 said:

we were advised and persuaded/mislead by an investment broker to invest in these opportunities. 

Is/was this broker FCA-regulated?  IPP Investment Profit Portfolio....

SonOf

What you call advice is only really advice if you use a regulated financial adviser.     If you didnt use a regulated financial adviser then any discussions you had with someone are just discussion, comment and opinion.   You are calling them an investment broker.  However, that job title is not a recognised regulatory term.   So, is that just what you are calling them or was that what it said on their business card?     
Effectively, you only get protection on advice if you use a regulated financial adviser. 
Investments into films is a possible area of regulated advice as there are tax perks that can suit high risk, high net worth investors.  It can also be done outside of regulated advice.   However, investing into a mobile app is not a regulated activity.  It is a business decision.     You generally get no protection on business decision and if the business fails, then that is hard luck.

This is why you are being asked if a regulated financial adviser was used.  You can check the FCA register if you do not know.

Linton

https://forums.moneysavingexpert.com/discussion/5653840/investor-profit-portfolio-anyone-heard-of-it/p1

Unsurprisingly it isnt on the FCA Register.

Linton

https://investorprofitportfolio.com/

Reaper

I haven't looked at these films but there was a previous thread on Carnaby
https://forums.moneysavingexpert.com/discussion/212388/carnaby-feature-films-plc

Briefly - the company set up a sub company for each new film. The films did moderately well but no investor ever seemed to get a penny of their investment back.

The reason was "Hollywood accounting" by which even successful blockbuster films massage their accounts to show no profit, avoiding the need to pay tax or investors. eg "Harry Potter and the Order of the Phoenix" made almost £1 billion, but claimed to have made a $167 million loss!
https://en.wikipedia.org/wiki/Hollywood_accounting

I have no idea whether your film company is the same setup but it wouldn't surprise me if it was.

Jonbvn

Reaper said:

I haven't looked at these films but there was a previous thread on Carnaby
https://forums.moneysavingexpert.com/discussion/212388/carnaby-feature-films-plc

Briefly - the company set up a sub company for each new film. The films did moderately well but no investor ever seemed to get a penny of their investment back.

The reason was "Hollywood accounting" by which even successful blockbuster films massage their accounts to show no profit, avoiding the need to pay tax or investors. eg "Harry Potter and the Order of the Phoenix" made almost £1 billion, but claimed to have made a $167 million loss!
https://en.wikipedia.org/wiki/Hollywood_accounting

I have no idea whether your film company is the same setup but it wouldn't surprise me if it was.

This is very true. Actors get paid on a % of the gross for this reason.