Knighthood-property

jimjames

jacqui_endean said:

Daliah said:

You could try and find them on the FCA Register. Then, when you don't find them, you could/should report them to the FCA .

They are registered on fca

They are not registered with FCA. They might claim so but it's untrue and they are pretending to be something they are not.

zagfles

Eyeful said:

If this is who you mean, then I would not touch it!
https://www.scamdoc.com/view/946073

The best 1 year safe bond is paying about 2.55%
The best 5 year safe bond is paying about 2.9%

The FTSE 100 is paying about 3.4% (this is a risk investment)

So something paying 6% , is telling me it is above average risk and not to touch it! 

It's not so much they're risky, Tesco are probably fairly safe, but the bonds probably aren't what the OP thinks they are and what they're being presented as. They're corporate bonds trading at a premium over their nominal value.

Tesco issued the bonds at 6% in 1999 when interest rates were higher. Interest rates fell, so the bonds rose in value. But interest and redemption are based on nominal values, so the effective interest rate is less than 6% of current bond value, plus holding them to maturity will guarantee a capital loss, as only the nominal value will be paid, and likely capital loss if sold before maturity. 

Eyeful

zagfles I understand and agree with what you write.

I hoped to show  persons like the OP, how to easily tell obvious above average risk investments (or scams) from safe (FSCS) backed bonds.

This simple method I am sure, would have steered many newbies away from a good number of the mini bond scams of the past.

Daliah

zagfles said:

Eyeful said:

If this is who you mean, then I would not touch it!
https://www.scamdoc.com/view/946073

The best 1 year safe bond is paying about 2.55%
The best 5 year safe bond is paying about 2.9%

The FTSE 100 is paying about 3.4% (this is a risk investment)

So something paying 6% , is telling me it is above average risk and not to touch it! 

It's not so much they're risky, Tesco are probably fairly safe, but the bonds probably aren't what the OP thinks they are and what they're being presented as. They're corporate bonds trading at a premium over their nominal value.

 

The Tesco bonds are a complete red herring though.

Money you pay to the fraudsters will stay with the fraudsters. They will buy nothing for you, and your money will be gone forever. If they bother with providing you with a certificate or purchase confirmation for a Tesco bond, that will be a fake, and they’d only do so if they think they can get some more money out of you.

dunstonh

 The Tesco bonds are a complete red herring though.

And as Tesco bonds are not a retail product, they are not meant to be marketed to retail consumers...     And as you say, they wouldn't be bought anyway.  Its just all made up to entice money out of the person being scammed.

zagfles

Daliah said:

zagfles said:

Eyeful said:

If this is who you mean, then I would not touch it!
https://www.scamdoc.com/view/946073

The best 1 year safe bond is paying about 2.55%
The best 5 year safe bond is paying about 2.9%

The FTSE 100 is paying about 3.4% (this is a risk investment)

So something paying 6% , is telling me it is above average risk and not to touch it! 

It's not so much they're risky, Tesco are probably fairly safe, but the bonds probably aren't what the OP thinks they are and what they're being presented as. They're corporate bonds trading at a premium over their nominal value.

 

The Tesco bonds are a complete red herring though.

Money you pay to the fraudsters will stay with the fraudsters. They will buy nothing for you, and your money will be gone forever. If they bother with providing you with a certificate or purchase confirmation for a Tesco bond, that will be a fake, and they’d only do so if they think they can get some more money out of you.

Quite possibly, I don't know what their "business model" is. Whether it's to fraudulently take the customers' money, or sell them genuine Tesco bonds with a large commission while making out they're like a fixed rate deposit account, or whether the OP has simply misunderstood what they're selling and they're on the level.

But whichever, I think the actual genuine 6% corp bonds which do exist need to be explained otherwise scammers will point to them and say - look, they do actually exist, the rich and powerful vested interests say they don't because they don't want oiks like you to have them, they want them all to themselves etc etc.

Conspiracy theories based around rich and powerful elites wanting to screw over common people do work - you see it in politics all the time, eg people who claim the Tories only look after their rich mates, the Labour 2017 manifesto even used it as a tagline "for the many not the few". Obviously most people don't believe these conspiracy theories, so they're ineffective in eg winning a majority in an election, but with financial scams you only need a small minority of suckers to fall for them to make a lot of money. I think 419 scams get something like a 1 in a million success rate.

masonic

I agree it is worthwhile informing prospective marks of this fraud that

1) The corporate bond is a real financial instrument, but it is not a savings account

2) It doesn't actually pay the "interest rate"/return in the title

3) The genuine investment is risky and you could lose all of your money

4) It is unlawful for someone to market it to you

5) It is unlikely that a law breaking marketer will do anything other than run off with your money leaving you with no investment

zagfles

Deleted_User said:

zagfles said:

Conspiracy theories based around rich and powerful elites wanting to screw over common people

That's one true, though . Labelling some accurate information as conspiracy theories is itself a form of misinformation, and is one of the factors that leads some people into entering the realm of the wilder conspiracy theories.

"That one"? What "accurate information"? I'd wager that it's mostly the sort of people who fall for conspiracy theories based around people perceived as more "privileged" getting a better deal than "ordinary" people who fall for the sort of scam discussed in this thread. It's like the "women enpowering women" pyramid scam: https://www.theguardian.com/uk/2001/aug/05/tracymcveigh.theobserver where the argument against detractors was it's just the men in power who want to put women down so don't want you to invest. Otherwise why just market to women? Using identity politics, our type against yours, you are the oppressed little people, rise up against the oppressor.

You'll always get a small minority who fall for this sort of scam, something the scammers are well aware of.  It doesn't generally work in politics of course, because then you need a majority to believe them.

jimjames

zagfles said:

Daliah said:

zagfles said:

Eyeful said:

If this is who you mean, then I would not touch it!
https://www.scamdoc.com/view/946073

The best 1 year safe bond is paying about 2.55%
The best 5 year safe bond is paying about 2.9%

The FTSE 100 is paying about 3.4% (this is a risk investment)

So something paying 6% , is telling me it is above average risk and not to touch it! 

It's not so much they're risky, Tesco are probably fairly safe, but the bonds probably aren't what the OP thinks they are and what they're being presented as. They're corporate bonds trading at a premium over their nominal value.

 

The Tesco bonds are a complete red herring though.

Money you pay to the fraudsters will stay with the fraudsters. They will buy nothing for you, and your money will be gone forever. If they bother with providing you with a certificate or purchase confirmation for a Tesco bond, that will be a fake, and they’d only do so if they think they can get some more money out of you.

Quite possibly, I don't know what their "business model" is. Whether it's to fraudulently take the customers' money, 

It's 100% a scam. When you misrepresent what you are selling and who you are there is no chance that it's genuine.