Property Investment Scam

Jeffers_the_Red
Jeffers_the_Red Posts: 4 Newbie
in Savings & investments
I invested in a year long bond in a company called Minerva Development. The bond matured but when I tried to contact them I was diverted to ActionFraud (the police). My building society (Nationwide) have told me that they cannot reclaim from Minerva's bank (Lloyds) and that they themselves are not liable as they aren't at fault.

I am not happy with this obviously but I don't know the best way of complaining about this and what my chances of being able to reclaim the money from Nationwide are. Has anyone got experience of this and in a position to offer advice?

Thanks.
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Comments

  • dmelife
    dmelife Posts: 133 Forumite
    First Post Combo Breaker First Anniversary
    You made the decision to invest in an unregulated illiquid high risk bond so what’s it got to do with Nationwide? The money is most likely gone.
  • Jeffers_the_Red
    Jeffers_the_Red Posts: 4 Newbie
    Because it is obviously a fraudulent company, not a high risk one.
  • doe808
    doe808 Posts: 452 Forumite
    Photogenic Name Dropper First Post First Anniversary
    Why did Nationwide tell you to invest in a high risk scheme?
    Total - £340.00

    wins : £7.50 Virgin Vouchers, Nikon Coolpixs S550 x 2, I-Tunes Vouchers, £5 Esprit Voucher, Big Snap 2 (x2), Alaska Seafood book
  • dmelife
    dmelife Posts: 133 Forumite
    First Post Combo Breaker First Anniversary
    Taken from their website:

    Your capital is at risk. Please read the risk factors.
    Please note that this investment is only suitable for sophisticated, high net worth and restricted investors.
    If you have any doubts about the suitability of the investments for you, we recommend that you contact your Financial Advisor.
    Past performance and forecasts should not be taken as an accurate predictor of future performance.

    Did you really think you were getting 7% per annum from a low risk investment?
  • Barney_Rubble_0403
    Barney_Rubble_0403 Posts: 177 Forumite
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    Looks like the company was dissolved in August.
    ::A
  • SonOf
    SonOf Posts: 2,631 Forumite
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    edited 18 December 2019 at 1:31AM
    My building society (Nationwide) have told me that they cannot reclaim from Minerva's bank (Lloyds) and that they themselves are not liable as they aren't at fault.

    Which is correct.
    I am not happy with this obviously but I don't know the best way of complaining about this and what my chances of being able to reclaim the money from Nationwide are.

    None. This is not a money transfer fraud. This was a bad decision by you that you made willingly.
  • Jeffers_the_Red
    Jeffers_the_Red Posts: 4 Newbie
    Can I just repeat, this was a fraudulent company, it wasn't a high risk investment that went wrong. If anyone has constructive advice on how best I should proceed then please let me know. It doesn't really help to be told that I'm basically a plonker who deserves to lose all their money. Constructive advice on how to approach Nationwide and the Financial Ombudsman or any other avenues would be appreciated.

    I am being constantly contacted by other companies telling me that as it was a property bond that there is still value in it. I'm aware that these are probably also all scam companies and that I must be on an idiots' list used by fraudsters but I'm wondering if there is still value in the bond or if the company has gone into administration, whether I can put in a claim with the liquidators or the company's bank.
  • atush
    atush Posts: 18,726 Forumite
    Name Dropper First Anniversary First Post
    The money is gone, there is no one to claim it from. It as a high risk investment thru a fraudulent company. Nothing Nationwide can do about where you chose to invest.

    You could sue the individuals involved if you can find them. Has Action fraud taken your details for any upcoming case against the fraudsters?
  • Malthusian
    Malthusian Posts: 10,938 Forumite
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    Jeffers_the_Red wrote: »
    Can I just repeat, this was a fraudulent company, it wasn't a high risk investment that went wrong.

    It doesn't really matter as your money is gone either way. Nationwide are not liable whether it's a money transfer fraud (aka a clone scam) or a high risk investment that went wrong.

    I'm assuming this is the company referred to in this Pistonheads thread - Minerva Development Group which then changed its name back to Hex Options Limited before going into liquidation. There is an issuer of high risk bonds called Minerva Lending plc, but they're still in business and appear to be unrelated.

    Were they recommended to you by an FCA-registered financial adviser or SIPP provider?
    I am being constantly contacted by other companies telling me that as it was a property bond that there is still value in it. I'm aware that these are probably also all scam companies and that I must be on an idiots' list used by fraudsters but I'm wondering if there is still value in the bond or if the company has gone into administration, whether I can put in a claim with the liquidators or the company's bank.
    There is no "probably" about it. The fact that you are willing to entertain the notion that there might still be value in the investment is why they are constantly contacting you.

    If the liquidators actually recover anything (which is very unlikely) they will not bother cold-calling you to rabbit on about there still being value in it. They will already have your details so you don't need to do anything unless they ask you to submit a proof of claim.
  • dales1
    dales1 Posts: 230 Forumite
    First Anniversary Name Dropper First Post
    Malthusian wrote: »
    Were they recommended to you by an FCA-registered financial adviser or SIPP provider?
    This is your only hope of redress.
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