Home Financial Planning FCA wins case towards £57m Ponzi scheme

FCA wins case towards £57m Ponzi scheme

FCA wins case towards £57m Ponzi scheme


The Excessive Court docket has dominated in favour of the FCA towards the director of an organization which ran an unlawful care residence unauthorised collective funding scheme (UCIS).

The Ponzi-style scheme took £57m from 380 buyers between 2016 and 2020.

The FCA’s motion can be towards the principle gross sales agent for the scheme, Fortem World Restricted, which was owned by Robin Forster and Richard Tasker.

Robin Foster’s Qualia Care Properties and Qualia Care Developments Ltd supplied investments in care houses run by a 3rd firm, Qualia Care Restricted.

All three firms are in administration and Fortem World is in liquidation.

Buyers bought a long-term lease in a room in a care residence, after which sub-let the room again to the Qualia firms.

Buyers have been promised returns of between 8% and 10% of the acquisition worth over the interval of the sublease.

The leases price between £50,000 and £75,000.

The FCA has requested the Excessive Court docket to find out the sums that the defendants needs to be required to pay again to buyers.

Following an earlier Excessive Court docket trial in Might, the court docket agreed with the FCA that the scheme was illegal and amounted to an Unauthorised Collective Funding Scheme.

The court docket additionally agreed that the returns promised to buyers have been by no means prone to be achievable and that Mr Forster had made false and deceptive statements to buyers in regards to the sustainability of the scheme.

Steve Sensible, joint government director of enforcement and market oversight on the FCA, mentioned: “Mr Forster didn’t simply put buyers’ funds in danger by promoting investments in an unauthorised scheme that was not sustainable, he additionally put in danger the wellbeing of residents of the care houses, a lot of whom have been susceptible.

“I wish to thank the Care High quality Fee for his or her help throughout our investigation and their work guaranteeing the residents of those care houses continued to obtain the care they want.

“The Qualia scheme supplied unrealistic returns based mostly on its unsustainable enterprise mannequin and operated like a Ponzi scheme. Mr Forster’s reckless behaviour put buyers at severe threat, and we’ll now search compensation for them.”

Previous to the Qualia scheme, Mr Forster was concerned with MBI firms which operated a really related funding scheme to Qualia.

The FCA has issued a declare within the Excessive Court docket arguing that the MBI scheme was additionally a Collective Funding Scheme which was being operated with out FCA authorisation. The FCA mentioned it’s going to search an identical Restitution Order in relation to the MBI scheme.



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