London Capital and Finance has finally collapsed, but what does this mean for El Cupey’s investors?
As a result of this, It has now come to our attention that the LCF has now collapsed, leaving the people who invested in El Cupey and a leisure park in Cornwall hugely out of pocket, still.
LCF’s investors who are mostly pensioners have been waiting a long while to be compensated for their investments; however, the Evening Standard has established two new sets of pensioners who are linked to the scandal through third-party saving schemes who say their wait has been even longer. Now all of LCF’s investors are hoping that because the company has been caught breaking regulations, the government will have no choice but to compensate them for the schemes.
As the schemes consisted of developments such as El Cupey and a leisure park in Cornwall, they have been taken under the wing of Prime Resort Development, a company who borrowed £70.1 million of LCF’s investment funds. LCF’s administrators have contacted PRD in regards to the refunding of the resorts projects, but after lack of cooperation, they are left very concerned.
But with all of these people now left short of tens of thousands of pounds, how have LCF been conning more and more people outside of their firm? ‘It’s all about their connections! -“LCF Bondholders had called for a wider-ranging inquiry than what they claim is the limited jurisdiction under which ‘Gloster’s probe has been authorised.”
This isn’t the first time that there have been claims of companies linked to LCF scamming investors into property developments and timeshares. Lawyers acting on behalf of the Dominican Republic resort development investment claim were notified that the scheme was introduced by another company called Eco Resort Sales, whose director Elten Barker was also a director of several companies in which LCF invested in.
Eco Resorts were contacting timeshare holders in the promise that they could buy investors out of their timeshare if they invested into the Dominican Republic scheme (known as El Cupey) that was supposedly guaranteed to be completed in 2014 but is still non-existent. Already-investors of the luxury hotel apartments were told they could sell their condo for a 20% profit or live off the rental income. This led customers to allegedly remortgage their homes to fund for this “great” investment that the company had promised regular payments to pay off the interest of the loans for.
Pensioners saw El Cupey as an excellent investment for their retirement and inheritance for their children, but it was claimed that after investing, they were then harassed into providing the scheme with more money by a company called Sanctuary International. Director and owner of SIR, Mark Ingham was another linked individual as he was previously director of the LCF-funded Cornish holiday park.
Clients then informed their lawyers that they were also being contacted by a new corporate investor called Sustinere whose directors included LCF’s former chief executive Andy Thomson and Simon Hume-Kendall; the establisher of LCF’s predecessor and who was a shareholder and director of other LCF investment schemes. Clients who were also using the Law firm Buss Murton were unaware that they had formerly handled legal dealing for LCF.
Now, the FSCS are labelling the development as NIL Value, leading to more complaint from its investors that may just grant them their money back.
In terms of the Cornish park, investors claimed to be owed money through a bond called Lakeview UK Investments which was run by Steven Wright, a policeman-turned financier; these bonds were significantly de-valuing the large investments.
The connections continue; the money raised by these LUI bonds was then lent to the site’s owner at the time, International Resorts whose director, Sedgwick, was LCF’s go-to lawyer. Dominican Scheme’s Sedgwick and Ingham also briefly became directors of Lakeview.
Now investors that are still being owed money from their original investment and their dividends have been informed that the terms of their bond have been extended for another two years. Lakeview has also claimed that they are no longer liable to pay the interest of the bonds as they had always borrowed from LCF which has now gone corrupt. However, their accountants, Real Estate Associates are said to be looking into finding new financers to pay back investors.
If you are an investor of a similar natured scheme, our team here at Athena Law are highly-experienced in dealing with such timeshares and can help you find a way out. We will do the utmost in supporting you through this tough situation and in finding any illegal clauses or irregularities in your contracts so that you are relinquished from your financial burden.
Contact us today on 01618 398847, and we can join you on this fight.