Pension Life and Forsters LLP have issued proceedings in respect of the Trafalgar Multi Asset Fund.
This Cayman Islands-based fund is being liquidated and it is uncertain whether there will be any recovery for the victims whose pensions were invested in it.
Nearly 250 STM Fidecs QROPS members stand to lose £25 million.
Given the uncertainty of recovery by the liquidator, we felt it was essential to issue proceedings so that the victims’ interests would be protected.
STM Fidecs – a QROPS provider in Gibraltar – has issued the following update to the Trafalgar Multi Asset victims:
“Following an investigation into the status of the Fund’s investments, the Company’s directors determined that it would be in the best interests of the Shareholders to wind down the Fund and to focus on the recovery of assets and the distribution of such assets to those entitled to have recourse.”
STM Fidecs appointed Stephen Doran of Doran + Minehane as liquidator.
The update issued by STM Fidecs has given victims very limited information relating to the current status of the liquidation of the fund or the prospects of recovery. However, it has made it clear that there was “misappropriation of funds” and that there were investigations ongoing.
STM Fidecs has stated that it has recently commenced litigation against “various parties” and a claim has been issued against thirteen defendants in respect of misappropriated monies.
Whether the guilty parties will be brought to justice, or whether there will be any money left over for the victims after the the liquidator has been paid in full, remains to be seen.
It is well known that the Trafalgar Multi Asset scam has been under investigation by the Serious Fraud Office. This was announced by the SFO on 22 May 2017. Other schemes promoted by the same team of scammers included the Capita Oak and Henley pension scams which were promoted by Sycamore Crown Ltd, Jackson Francis Ltd, Portia Financial and Nunn McCreesh.
It is also known that the same scammers who were promoting Capita Oak, Henley and Trafalgar Multi Asset Fund were also promoting the Blackmore Global Fund run by Phillip Nunn and Patrick McCreesh. Nunn and McCreesh’s Blackmore Bond is currently in the hands of administrators Duff and Phelps.
Victims of all of these scams are still invited to contact the Serious Fraud Office if they have any evidence they wish to provide in order to help bring the fraudsters to justice: firstname.lastname@example.org
Forsters – the firm which Pension Life is working with – have liaised with the Trafalgar Multi Asset Fund investor committee (which currently includes a doctor and a police officer). Forsters and Pension Life are working towards bringing about the best possible outcome for the victims.
There may be serious doubts over whether the liquidation by Doran + Minehane will result in any meaningful returns for the victims. However, this litigation will give them a decent chance to get a large proportion of their pensions back.