The City of London Police is investigating a suspected widespread fraud case where a company named the 79th Group is believed to be offering loan notes to investors with a high interest return over a fixed period.
The 79th Group operate in real estate claiming to specialise in the acquisition, management and development of lucrative assets. They offer investment opportunities selling loan notes secured against properties, the City of London Police said in a statement on 28 February.
Investors are contacted by various third-party introducers offering the opportunity to invest with fixed returns between 12% for a minimum £10,000 investment and 15% for a minimum £25,000 investment.
The 79th Group tell investors that funds are used for real estate, wealth and aviation, the statement said, adding that another area of business advertised under the 79th Group is mining for natural resources in countries such as Canada and Guinea.
So far, four people have been arrested in connection with 79th Group. A large amount of cash, weapons, luxury watches and jewellery were found during searches of five separate properties, all of which were seized.
All people arrested have been released on bail and enquiries are ongoing.
Anyone who has been contacted by investors from the 79th Group, or working on behalf of the 79th Group, should contact the City of London Police immediately.
To submit information, people are asked to contact the City of London Police by completing a questionnaire on the Major Incident Public Portal (MIPP).
In a separate emailed statement to International Adviser, the 79th Group responded: “The Seventy Ninth Group categorically denies any wrongdoing following claims recently made public by the City of London police.
“Since the events of last week, we have been working diligently with our legal advisers to address the claims made as part of the investigation, while also providing information to business partners and other stakeholders.
“The company has also appointed independent forensic accountants to conduct a comprehensive review of the business.
“The Seventy Ninth Group remains committed to servicing its clients in the UK and across the globe.”
