We have seen a sharp increase in enquiries from clients who have been mis-sold investments into InvestUS.
APJ now represents 210 clients, double the number of clients who were engaged in June. Our clients could be due millions in compensation following the failure of the scheme. This follows claims that they were misled about its suitability as a pension investment.
The unregulated InvestUS scheme purchased repossessed several properties. These followed foreclosures after the financial crisis. The properties were then renovated to be let and sold on. Investors were promised returns of 15 percent per year over three years.
The largest loss reported by an individual client is £80,000. However, many have lost significantly more after also investing in other failed schemes. Other unregulated schemes include Ethical Forestry and Global Plantations.
Glyn Taylor, solicitor at APJ, said: “We have recently seen huge growth in the number of clients contacting us about investments into InvestUS. Our clients were unaware of the risks involved in the scheme and as a result have lost their life savings. Had they known the high-risk, non-standard nature of InvestUS, they would not have invested in the scheme.”
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, the unregulated introducer who recommended them to our clients enlisted independent financial adviser Shah Wealth Management to carry out risk reports on the suitability of the investments on a one-off basis.
Glyn added: “Due to the involvement of the regulated party we can seek redress for these clients. We’re confident we will be able to secure fair compensation for their losses. However, many clients also invested into other schemes as part of the self-invested personal pension (Sipp) schemes. These schemes have also failed and, as there wasn’t an IFA involved, clients can’t seek compensation from the FSCS. To ensure clients get full compensation for all their losses we will also be litigating against their Sipp providers to secure compensation for these additional investments.”