The Resort Group specialised in selling investment opportunities in hotel developments in Cape Verde, off the coast of Africa, usually for investment within clients’ pensions. But despite convincing many people to invest their pension funds into the company, clients have reported missing out on the promised returns and not getting their income or money back.
In 2016, a BBC Panorama programme highlighted the issue when it showed unregulated financial advisors promising a 10% return after a year of investment into the Cape Verde scheme.
If a financial advisor recommended you invest in a Resort Group SIPP, you may have been mis-sold and could be entitled to thousands of pounds in compensation.
The Resort Group’s primary way of finding investors was through financial advisors. These advisors used cold-calling tactics and the offer of free pension reviews. They then deployed aggressive sales tactics, reported to be high-pressure and the fear of missing out, to convince people to exchange their pension funds from standard, regulated schemes to SIPPs, earning introducer commissions of up to 15% in the process.
SIPPs give pension owners more freedom over their investments. This means that they offer a chance to reap higher rewards. But the risks are higher too. One major problem is that the Resort Group is not regulated by the FCA, meaning the money invested has no level of protection. Many clients were unaware of the risks and did not know that their money would not be protected. This makes this a clear case of mis-selling.
Lack of returns is just one of the problems that clients of this firm are facing. The way the investments worked was in two ways; people could either invest their pensions into the construction of hotel rooms or pay to become a part-owner of the company.
Despite the company using pension funds to purchase rooms in Cape Verde, there are few records of purchases actually being made. Sometimes, when a client would get a charge for a hotel room’s construction, there was no paperwork confirming that it actually existed.
For those who ended up buying whole properties, many deeds were not correctly drawn up, meaning they are not held by the investor.
You could make a DIY claim if you have been a victim of a mis-sold investment through The Resort Group. However, without the right professional advice and guidance, your claim could be inefficient and lead to you getting little, if any, compensation. And there is no guarantee that you would actually win. You could also be liable for the other side’s costs if you lose.
At Keller Postman UK, we provide professional, no-win, no-fee legal support for our clients. We work to ensure that you get the justice and compensation you deserve so you are not out of pocket due to being mis-sold or misadvised about your pension investments.
Contact our specialist team now.
Where multiple people have received negligent or fraudulent pension advice from the same professional advisor/company, we can help them to recover their losses collectively. Group actions can be a powerful tool and can have a bigger impact than a single claim.
CONTACT US TO DISCUSS A PENSION MIS-SELLING GROUP ACTION CASE