The investment was a forestry plantation in Costa Rica which lured in around 3,000 UK investors who have invested a minimum of £18,000 each into the scheme, with the total invested around £50m (€57.6m, $60.9m).
This firm fell into liquidation in early 2016 and according to a report on Radio 4’s Money Box, UK-based Ethical Forestry Limited paid its three directors £3.9m in 2014 and £10.3m in 2013.
This left the value of the investments uncertain and other issues have arisen with the scheme, including a hurricane which hit the plantation at the end of last year.
Dorset raids
According to a statement on its website, the SFO has been working the UK’s Dorset Police, to conduct a series of raids on Wednesday at three addresses in the county of south-west England.
The SFO has encouraged members of the public who have invested in these schemes to complete a questionnaire that will be available from Friday, 10 March.
Media reports have also suggested that the Financial Conduct Authority (FCA) was investigating the scheme over whether it should have been authorised by the regulator, amid claims HM Revenue and Customs (HMRC) has made a £21 million claim over the UK-based Ethical Forestry firms.
The move follows action by the Isle of Man’s financial services regulator to liquidate the stricken Eco Resources Fund, which convinced 189 investors to put $61m (£48m, €57m) into building a bamboo plantation in Nicaragua. And to appoint a controller for Quadris Environmental Forestry Fund PCC, a fund investing in Brazilian teak plantations.
