Due to paying very little to no financial return on investments made, the Resort Group on the island of Cape Verde has been subject to scrutiny and investigation.
Investors have not received the returns that they were promised by the Resort Group and are now in a position where they find themselves struggling to get their money back.
Despite this fact, the Resort Group is still actively seeking investment whilst local media sources state that the company is close to going into bankruptcy.
Fractional Owners
Investors had the option of either buying a full unit or becoming fractional owners. This meant that they became members of a company that was limited by guarantee but didn’t actually own any land on Cape Verde. Whilst the company may have entered into a purchasing contract with the Resort Group, in the vast majority of cases, it was never completed.
In some instances, investors were also charged a completion fee of between €2,500 and €5,000 despite the unit having not even been built at the time.
The disappointing returns experienced were only a minor problem. Typically investors are forced into having a self-invested personal pension (SIPP) without a means of getting out of it. Pensions that have been invested into fractional ownership have now been declared as having zero value.
Purchases Made Outright
Whilst some fortunate investors have received direct ownership of a Resort Group property in Cape Verde, lots of the titles to them have not been completed, meaning that legal ownership has not gone to the individual investors or their pension funds either.
Loan Notes & Bonds
There were some IFAs that arranged for investments to be made via loan notes or bonds like TRG Bond Companies I, II, III, IV, V, VI, and VII. Each of these has at some point loaned money to the Resort Group and has credit arrangements in place according to the terms that are specified in the issued information memoranda from each bond company.
Compensation Claims
SIPP providers like Novia, London & Colonial, Embark (previously called Liberty SIPP & Rowanmoor), Hartley Pensions (previously called Berkeley Blue), Guinness Mahon, GPC SIPP, Greyfriars, and Lifetime SIPP all have investments with the Resort Group.
Many of the IFAs that have been found responsible have been made to issue compensation through the Financial Ombudsman Service. After issuing compensation, the vast majority of IFAs have fallen into liquidation.
Act Fast
If you are someone who has had any dealing with the following companies and have not received all of your compensation back that you need to act fast:
Kingsway Wealth Management, Archer Bramley Limited, Furness Financial Management, CIB Life & Pensions Limited, Choices – Your Mortgage Solutions Limited, Insight Financial Associates Limited, Shah Wealth Management Ltd, Bank House Investment Management Limited, Serenus Consulting Limited, Omega Financial Solutions Limited, St Martin’s Partners LLP (previously called CUOX LLP), Parklands Wealth Limited, Total Financial Control Limited, Active Investment Services Ltd, Greyfriars Asset Management LLP, Strategic Wealth UK Limited, Foreman Financial Services Limited, Chadkirk Wealth Management Limited, Blue Ocean Financial Services Limited, Moneywise Financial Advisors Limited, Gerard Associates Limited, Consumer Wealth Limited, Active Wealth (UK) Limited.
The Background
The Resort Group developments were subject to lots of media coverage upon their initial completion and even saw some celebrities jet out to Cape Verde to visit.
With all of this media attention came a secret documentary television programme that was dedicated to rip-off schemes revealing that unregulated pension introducers were receiving seven percent commission on all cash investments that were made with the Resort Group.
Lifestyle Connections
During the investigation into the Resort Group, it was established that the company also owned a call centre based in Derby called Lifestyle Connections. This company was responsible for calling people to set up free pension reviews with expert consultants at First Review Pension Services (also owned by the Resort Group).
The consultants were unregulated so were legally not allowed to make recommendations to clients. In addition to this, secret recordings made it clear that the expert consultants were making recommendations that were wholly unsuitable for their clients.
The Resort Group
The consultants delivered detailed information to their clients regarding SIPP transfer for overseas investments into a fund that promised 10 percent interest each and every year.
It was claimed that the fund consisted of many properties from Resort Group developments. The consultants also openly admitted that they would receive a 7 percent commission on all cash investments that were made in the Resort Group.
Compensation Entitlement
As of 30 June 2016, both First Review Pension Services and Lifestyle Connections ceased taking on new clients.
The majority of investors involved with the Resort Group ended up putting their money into hotel apartments via numerous different introducers. Unfortunately, though, they all experienced the same outcomes in that they failed to get the income that they were promised and so are now struggling with getting their money back when requested.
Anyone that has lost money to the Resort Group may be entitled to compensation but they need to act quickly as there are time limitations in place.
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.
