“Indeed it seeks to release the directors of the company, including Mr Ames, from any liability.
The report then concludes that bankruptcy may be a better option for investors, arguing that it could “conceivably, yield a wealth of assets that have not been taken into account”.
Harlequin scheme
Founded in 2005, Harlequin is an unregulated property scheme based on luxury villas in the Caribbean and other exotic locations. It promised ‘guaranteed returns’ of 10% a year to the more than 6,000 pension savers who invested around £400m into the scheme via financial advisers.
However, the promised returns never materialised and the scheme ran into trouble in 2013 after the Financial Conduct Authority (FCA) issued several warnings, while the Serious Fraud Office is looking into the fund amid several legal cases.
To date, the UK’s Financial Services Compensation Scheme (FSCS) has picked up the tab of £100m to investors who received poor advice from financial advisers regarding investments in Harlequin, with many advisers being declared bankrupt after failing to cover client claims.
Harlequin response
A Harlequin spokesperson claimed that the company has conducted a survey of 500 investors where 93% want to avoid liquidation if possible.
“We are working with investor groups to finalise a proposal package – including Harlequin Property SVG investors taking control of Buccament Bay Resort and overseeing a new hotel management company – that will give HP SVG investors a viable alternative to liquidation,” he said in a statement.
The spokesperson added Harlequin still has a maximum of two months remaining to enter a final proposal, and that in the coming weeks it will work with KPMG to “satisfy its requirements and finalise its proposal to ensure it is robust and addresses any concerns or queries raised”.
