After being outed by a number of journalists, investors and whistle blowers, the billion pound savings scandal that was Blackmore Bonds collapsed back in 2020.
The company promised investors a return of 10% which would be made by making investments in various property developments throughout the UK. As a result of the investigations that were made into the company, it was revealed that the directors of Blackmore Bonds paid out £5.5 million of investor’s money into another one of their companies.
Blackmore Bonds implemented a highly aggressive sales tactic via an introducer that sold bonds in the company. This was brought to the attention of the Financial Conduct Authority (FCA) by a whistle blower and after an investigation by the Serious Fraud Office, the company faced £7 million in fees.
However, this didn’t stop Blackmore Bond from continuing their operation and so a further £30 million of investor’s money went into their scheme. They were not subject to any further action by the FCA due to the fact that the company was unregulated and was aimed at more sophisticated investors. This meant that, when signing up for the scheme, investors had to confirm that they were aware of the risks involved and that they could afford to lose their money.
Unsuitable Advice
Anyone that had dealings with the company and ended up investing, may have acted as a result of the high-pressure sales tactics used by the company’s introducer. Where this is the case, those people should have their transaction(s) with the company reviewed.
Compensation Claim Advice
Call us now for a phone or video consultation with one of our legal experts on 0800 041 8358 to find out if you are entitled to compensation, you may even be entitled to additional compensation if you have successfully claimed in the past.
