Risky land investments in Australia have cost unwary investors thousands of pounds after recommendations from rogue financial advisors.
The advisors sold the schemes as low-risk with high returns – but investors later found out the advisors were unregulated and they could not claim compensation when the investments went sour.
Green Oil Plantations (Australia) Ltd asked investors to stake a minimum of £10,000 for part of a bio-fuel tree plantation.
The investment pledged an 80% return over five to eight years.
The firm went to the wall as the directors lacked cash to bring the crop to harvest and the likely return would be too low to continue the business.
Worthless
Investors are likely to lose all their money as the scheme is outside of regulated compensation schemes.
In a separate case, an investor staked £30,000 to Verdant Australian Farmland after taking advice from an unregulated financial firm.
The investor could not get his money back and the investment is now worthless.
Warning signs for investors are when advisors promise returns that are above the norm.
Moving funds offshore also adds extra risks.
UK financial watchdog the Financial Conduct Authority regularly warns about rogue investment and advisors and the International Organisation of Securities Commissions keeps a list of suspected fraudulent advisers reported worldwide.
Warnings about bogus advisers – Worldwide
Here are the latest rogue financial firm warnings on the International Organisation of Securities Commissions we site:
- Coventry Trading SA – Canada
- Magellan Trading Group International – Canada
- GetEasy and iGetMania – Canada
- Eco Investment Group, LLC – Canada
- Wagner Capital Management Group – Ireland
- ACG1 – Luxembourg
- Inverbit Binary Options SL – Spain
- Millard Equity SA – Spain
- Stocks Markets Consulting SL – Spain
- GMT Markets – Spain
Warnings about bogus advisers – UK
Here are the latest bogus financial advisers listed on the Financial Conduct Authority (FCA) web site:
- Versima Plc
- Oumal Bank Ltd
- Drive Cars
- Thomas Capital Partners
- Harper Reed Consultants
Dealing with an unregulated firm
If you buy shares, save money or invest with an unregulated firm, you lose any protection offered by the Financial Ombudsman and the Financial Services Compensation Scheme. Broadly, you have no independent place to complain if the deal goes wrong and are unlikely to win any compensation.
Checking if a firm is regulated
Go to the Financial Services Register to check if a firm is regulated in the UK.
Reporting a suspected bogus adviser
Find out how to report unauthorised advisers on the FCA web site
