We are representing over 100 clients who have been mis-sold investments into InvestUS.
Our clients could be due a total of £7.3 million in compensation following the failure of the scheme. They were misled about its suitability as a pension investment.
Who are InvestUS?
The InvestUS scheme purchased repossessed properties in Detroit, Florida and Chicago. Following this, the properties were renovated, let and sold on. Investors were promised returns of 15 percent per year over three years. However, these returns did not materialise. Therefore, clients are looking to seek redress due to mis-selling.
APJ clients have lost up to £243,000 each. They moved their pensions from defined benefit schemes to self-invested personal pensions (Sipp) which included investments into InvestUS.
The transfers were made on the advice of Avacade, an unregulated introducer. It conducted free pension reviews and promised individuals far greater returns than their defined benefit pensions offered.
InvestUS has now failed, rendering our clients’ investments worthless, despite the ‘guaranteed’ returns promised to them.
How APJ can help
Our financial mis-selling specialist Glyn Taylor said: “Avacade gave no indication to our clients of the high-risk, non-standard nature of InvestUS. Our clients believed they had chosen to put their hard earned pension pots into a safe scheme with a high return.”
The Financial Services Compensation Scheme (FSCS) can only award compensation if there is evidence a regulated IFA advised on the investment. In order to fast track these investments, Avacade enlisted independent financial adviser Shah Wealth Management. They carried out risk reports on the suitability of the investments on a one-off basis.
APJ clients who invested into InvestUS held their pensions in Sipps with under-fire Sipp providers Liberty Sipp and Guinness Mahon. We have already issued legal cases against both providers for allowing Sipp investments into a range of unsuitable schemes. These included Ethical Forestry and Global Plantations.
Glyn also said: “Avacade and the IFA, which have both now been liquidated, undertook a significant amount of business with a small number of Sipp operators. We believe there is joint venture between Avacade, Shah Wealth Management and the Sipp providers. Therefore, Sipp providers including Liberty Sipp and Guinness Mahon are also liable for the wrongs committed in promoting Invest US as a suitable investment for people’s pensions.
“What’s even more galling in the case of Invest US, is that we believe there is a business relationship between directors of Avacade, the introducer; Shah Wealth Management, the IFA; and Invest US. These unscrupulous ‘businessmen’ have been greasing their own palms with the pension pots of hard working Britains.”
Did you invest your Sipp into InvestUS? You could be owed compensation as a result. Call our legal experts or fill in our contact form. Our team will advise you on how to get redress.