Anthony Philip James & Co (APJ), a financial miss-selling litigation firm, is acting on behalf of 100 clients who were mis-sold investments in InvestUS, an unregulated investment scheme based in the Seychelles.
APJ estimates clients could be due a total of £7.3m ($9.6m, €8.3m) in compensation after they were misled about the scheme’s suitability as a pension investment.
US property scheme
InvestUS purchased repossessed properties in Detroit, Florida and Chicago following foreclosures after the financial crisis. The properties were then renovated, let and sold on, with investors promised returns of 15% per year over three years.
The investment scheme failed, rendering clients’ investments worthless, despite the “guaranteed” returns promised to them.
APJ said clients have each lost up to £243,000 after moving their pensions from defined benefit (DB) schemes to self-invested personal pensions (Sipp) which included investments in InvestUS.
Unregulated introducer
The firm alleges the transfers were made on the advice of Avacade, an unregulated introducer which conducted free pension reviews and promised individuals far greater returns than their DB pensions offered.
Glyn Taylor, solicitor at APJ, said: “Avacade gave no indication to our clients of the high-risk, non-standard nature of InvestUS.
“Clients believed they had chosen to put their hard-earned pension pots into a safe scheme with a high return.”
A ‘business relationship’
Clients who invested into InvestUS allegedly held their pensions in Sipps with providers Liberty Sipp and Guinness Mahon.
APJ further says that to fast track these investments, Avacade enlisted UK-based independent financial adviser Shah Wealth Management to carry out risk reports on the suitability of the investments on a one-off basis.
“Avacade and the IFA, which have both now been liquidated, undertook a significant amount of business with a small number of Sipp operators.
“We believe there is joint venture between Avacade, Shah Wealth Management and the Sipp providers.
“Therefore, Sipp providers including Liberty Sipp and Guinness Mahon are also liable for the wrongs committed in promoting InvestUS as a suitable investment for people’s pensions,” Taylor said.
Further, Taylor said APJ believes there is a “business relationship” between directors of Avacade, Shah Wealth Management and Invest US.
“These unscrupulous ‘businessmen’ have been greasing their own palms with the pension pots of hard working Britons,” Taylor said.
When International adviser contacted Liberty Sipp about Taylor’s comments, a spokesperson said it has not received any notification of legal proceedings from APJ in relation to the InvestUS “or any other investment”.
Ongoing cases
APJ has already issued legal cases against both providers for allegedly allowing Sipp investments into a range of unsuitable schemes.
Liberty Sipp has hit back at the lawsuit, however, saying it has never offered financial advice on the investments in question.
