Pension Investments | German Property Group | Rosenblatt’s Financial Crime Team
15th December 2020
On 1st December 2020 it was reported that millions of pounds held by failed property investment company German Property Group (GPG) has not been returned to investors.
FCA and FSCS Investigation | Rosenblatt’s Financial Crime Team
GPG, formerly known as Dolphin Trust, began filing for bankruptcy in July 2020 and is currently in administration. It is estimated to owe £1bn, with at least £378m owed to UK investors. It promised high interest payments and a return of original capital investments by using investors’ pension savings to buy derelict listed buildings across Germany, turn them into flats and then sell them to German buyers. It was reported that not enough buildings were developed to pay back the loans.
Evidence has also been uncovered suggesting loans were paid to director Charles Smethurst and his family, including €9m paid to a company run by Mr Smethurst’s wife and that some investors were paid back using other investors’ money.
The Financial Conduct Authority said it “is aware that UK consumers have invested in GPG, either directly or via a self-invested personal pension scheme (SIPP) or small self-administered scheme (SASS) arrangement.
“We are working closely with the Financial Services Compensation Scheme (FSCS) and the Ombudsman service on this matter and will be issuing further information as the situation develops.”
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