Specters have recently settled a Group Action against a firm of solicitors arising out of a fraudulent investment scheme.
Specters were instructed by to pursue a Professional Negligence Group Action Claim against their former solicitors and conveyancers relating to a potential unregulated collective investment scheme.
The common feature of the various ventures was the involvement of Mr Gavin Woodhouse. Mr Woodhouse operated through a company called Northern Powerhouse Developments Limited as well as through various subsidiaries, associated companies, special purpose vehicles and an involvement in NBi.
Since 2016, Mr Forster, in addition to his former involvement with MBi, has had significant control over a company called Qualia Care Limited (with various connected companies also using the name “Qualia”).The venture touted the renovation of existing buildings into luxury care homes. The investors, many elderly or with little investment experience, were promised a 125 year lease for an individual room which would generate a guaranteed rental income.
The developer recommended a firm of solicitors or conveyancers to act for the investors in relation to the purchase, and in return the developer would pay the legal fees. However, during the conveyancing, the solicitors and conveyancers at no point advised the investors that this was, in fact, an unregulated collective investment scheme or another scheme of this nature, a dangerous type of investment that some have likened to a Ponzi Scheme.
Each investor was expected to pay an unusually large deposit that was sent immediately to the developer. The solicitors also did not warn investors of the possible repercussions should the developer go out of business.
In 2019, the developer did indeed go into administration. All investors lost their entire deposit. On some occasions the care room had not even started to be built.
Specters were instructed on behalf of a large group and have recently recovered substantial compensation from the Solicitors Professional Indemnity Insurer.
Specters are aware there are many other investors who are yet to bring a claim or were not aware that they could make a Professional Negligence claim. If you entered into the above investment or similar after 2019, please contact Paul Daniel, email: Paul.Daniel@specters.co.uk or Andrew Specter email: Andrew.Specter@specters.co.uk.
We can offer a free no obligation initial consultation with you to explore your options.
If you have been a victim of investment fraud or a failed collective investment scheme please do not hesitate to contact our team.