Fraudulent investments?
Comments
-
They invested £165,000 between the 2 companies, the majority going to helix. The financial advisor is part of a small company, maybe just one or two more advisors and a secretary. The advisor is still saying their money should be safe but due to on going court cases their capital can not be returned to them and they are no longer eligible for any returns they were meant to get. We have drafted a letter to the financial company but my parents are still reluctant to send it until the see a solicitor next week and get advice. We live in hope.0
-
The advisor is still saying their money should be safe but due to on going court cases their capital can not be returned to them and they are no longer eligible for any returns they were meant to get.
Investors in unregulated investments which go bust typically lose the lot, as any funds recovered from the ashes go to pay the liquidator.
In cases like this, the FOS has often directed that the adviser must buy the investments back off the investor at market value and pay compensation of the difference. This means that in the highly unlikely event that turns out that everything is hunky-dory, the investor doesn't get to have their cake and eat it; the adviser gets the money recovered from the investment.
There is therefore absolutely no reason to wait for the outcome of these court cases before starting the complaints process, and plenty of reasons not to wait.
There is a strong likelihood that the court cases are a sideshow and the money is long gone.
Hopefully the solicitor is giving you a free half hour and at the end they will tell you to send the letter.We have drafted a letter to the financial company but my parents are still reluctant to send it until the see a solicitor next week and get advice. We live in hope.0 -
Hi me again with a couple more questions and would very much appreciate any help. As mentioned above the advice is to register a complaint to the financial company/financial advisor and allow 8 weeks before then contacting FOS. Can a solicitor register a complaint for my parents or would that be not allowed as it's using the legal channels? Does it have to be them and if it does can a letter be sent as opposed to telling him face to face as relations are not good as you can imagine. Also if we register a complaint to express our dissatisfaction of the advice he gave them, would that potentially give him time to move his assets about so that if/when the FOS do investigate it may look like he doesn't have as much as he does?
Thanks so much for any replys, we are finding this difficult to get our heads around.0 -
I can't comment on the other points but a formal, written letter of complaint is the way to go. Try to keep all emotion out of it and just stick to the facts.0
-
Thank you lungboy. So us writing it as opposed to a solicitor?0
-
he assured them this was a completely safe investment and nothing could go wrong
I suspect he would put it differentlyHe was the one who advised that this was a sound investment and 100% assured them their money was safe
Is there proof he said that?
I'm not saying you are exaggerating.
But I have seen many with a good case who destroy it by exaggerating.
Exaggerating tends to backfire on them and lose their credibility as a witness in court.
Wheras if they stuck to the truth they would have won.
“It is difficult to get a man to understand something, when his salary depends on his not understanding it.” --Upton Sinclair0 -
I wasn't with them so can only go by what they tell me. They say they asked on numerous occasions, before the signed their money over, was this definitely a safe investment and were they doing the right thing. He assured them it was safe, nothing could go wrong and if it did they would get 95% of their capital back. They say if they thought for 1 second that there was a risk to their money they would not have signed a penny over, they were satisfied by what he was telling them that there was no risk.0
-
-
Maybe it was worded nothing should go wrong. Like i said I wasn't there. Is the important thing is they are adamant they were NOT made aware of the risks.0
-
Thank you lungboy. So us writing it as opposed to a solicitor?
At this stage, yes, there's no need for a solicitor. Just a standard, formal letter, stating in bold that it's a letter of complaint, and outlining the complaint. Send it to the boss of the company. I really can't stress enough though that you need to keep emotion completely out of it and simply state the facts as your parents see them. Post a redacted version here first and I'm sure you'll get some pointers.0
This discussion has been closed.
Categories
- All Categories
- 343.1K Banking & Borrowing
- 250.1K Reduce Debt & Boost Income
- 449.7K Spending & Discounts
- 235.2K Work, Benefits & Business
- 607.9K Mortgages, Homes & Bills
- 173K Life & Family
- 247.8K Travel & Transport
- 1.5M Hobbies & Leisure
- 15.9K Discuss & Feedback
- 15.1K Coronavirus Support Boards