Financial advisory group Tavistock Investments has made provisions to cover any possible claims from the clients of one of its former advisers, the firm revealed in its financial results.
Neil Bartlett was found guilty of fraud in December 2018 and sentenced to eight year in prison.
He conned his clients out of £4.5m ($5.6m, €5m) to fund a lavish lifestyle of foreign travel, top hotels and gambling.
In April 2020, the Financial Conduct Authority (FCA) banned him “from performing any function in relation to any regulated activity carried on by any authorised person, exempt person or exempt professional firm”.
Case by case
Tavistock had already set aside £2.4m to cover any claims from Bartlett’s victims.
The group revealed it has already payed out £367,000, leaving it with £2.1m for any future disputes.
“In December 2018, Neil Bartlett, one of the group’s former advisers was found guilty of fraud and was sentenced to eight years imprisonment,” Tavistock said.
“As a consequence of his actions, the subsidiary company within the group with which he was previously associated has been approached by a number of victims, the majority of whom were previously unknown to the company, seeking to recover monies stolen from them by Bartlett.
“All steps are being taken by the group to refute these approaches and to address them individually in an appropriate manner.
“Having sought legal advice, the directors consider it appropriate to make a provision of £2.1m regarding this matter.
“This provision is matched by an equivalent receivable provision, as the directors believe that any liability that might ultimately arise, is fully covered by the professional indemnity insurance policies that the group has in place,” the firm added.
