UK government agency the Insolvency Service has warned investors about scammers running fake recovery schemes of a failed investment firm.
Essex and London Properties Limited (ELP) was wound up by the courts in September 2018 on public interest grounds, as the Insolvency Service said it “operated a ‘Ponzi scheme’, misusing close to £20m ($24.5m, €22m) of investors’ money”.
An officer of the Insolvency Service was appointed as liquidator of the company and has recently been made aware of several schemes targeting the company’s investors.
The ‘recovery schemes’ falsely claim they can retrieve invested capital from the liquidation process, pretend to be acting in co-operation with the Official Receiver and some even claim to be the Insolvency Service itself.
Do not engage
Joanna Caswell, deputy official receiver of the Insolvency Service, said: “These schemes pose a serious threat, as they will attempt to illicit further funds from you which you are unlikely to see again.
“In the strongest possible terms, we strongly advise anyone who invested in Essex and London to not engage with anyone who claims they can recover your investments.
“The Official Receiver will never contact anyone offering to recover their money for a fee or recommend another organisation offering the same service. If in doubt, contact the Official Receiver.”
Original scam
The Insolvency Service said, in 2018, that Essex and London Properties “claimed to purchase properties with the intention of selling them on at a profit or getting rental income for investors”.
Potential investors were approached directly or via intermediary platforms, which received 35% of the invested amounts and offered partnerships in a limited partnership scheme.
Investors were “enticed to invest by offers of an 8% annual return paid quarterly if the money was held for three years or 12% if the money was held for one year”.
