What were The Resort Group’s investment opportunities?
The purpose of The Resort Group’s investments was to build resorts, including hotels in the Cape Verde area. As a result of the advice given, many people were convinced to invest their pension funds into this particular scheme. What’s more, because of The Resort Group, Cape Verde complaints rose and the island country was targeted by numerous financial institutions looking to root out similarly high-risk schemes. Hundreds of investors were coerced into transferring their safe and secure pensions into SIPPs to invest in The Resort Group Tortuga Beach, as well as The Resort Group Dunas Beach – both resorts promised healthy returns with a modest (but significant) initial investment.
What happened with The Resort Group scheme?
One of The Resort Group’s problems was that 2007 was a particularly bad time for a venture of its kind. As the financial markets crashed in 2007 (just a year after the company was founded), CEO Rob Jarett and The Resort Group found themselves in desperate times. To pump money into the firm, they set up numerous complex interlinked organisations with the aim of funnelling investments into the four Cape Verde properties. Some of these sham organisations included Lifetime Connections (a call centre) and First Review Pension Services (a financial services firm that used cold call tactics to entice investors).
However, little did investors know, they were subjecting themselves to high-risk investments that were not regulated by the Financial Conduct Authority (FCA). Investors were not told about the risks involved in investing in The Resort Group’s property and like numerous mis-selling cases, investors had no idea what they were getting themselves into.
Investors are not receiving the income they were promised and are struggling to get their pension investment back when they ask for it.
Clients could purchase a unit in a hotel complex out right – or become a fractional owner.
Disappointing returns were only a small issue; pension investors are usually stuck in a SIPP with no way to get out.
Bonds & Loan Notes
But these are not the only investments we have seen. Some IFA’s arranged investments via bonds or loan notes such as:
• 7% Resort Group 2026
• Resort Group
• Resort Group II
• Resort Group V
• Resort Group VI Inc
• Resort Group VII Inc 0816
• The Resort Group Corporate Bonds III
• The Resort Group Corporate Bonds V
SIPP providers such as:
• The Lifetime SIPP, Greyfriars, GPC SIPP , Guinness Mahon, Berkeley Burke (all now Hartley Pensions)
• Liberty SIPP & Rowanmoor (now Embark)
• London & Colonial
• Novia all hold investments with the Resort Group.
Numerous IFA’s held responsible have been ordered to pay compensation via the Financial Ombudsman Service.
If you had dealings with any of the firms listed below, and even if you have already received some compensation via the FSCS – act now.
We know that most claimants only received interim payouts and may now be eligible for a top-up payment or to pursue their SIPP provider for their uncompensated losses.
We are happy to review the transaction to ensure you will receive compensation to the maximum which can be achieved.
If the Financial Adviser firm you have dealt with is not listed below – please call Reclaim My Money on 0161 823 4343, so we can assist with the search on the FCA register.
Active Wealth (UK) Limited
Consumer Wealth Limited
Gerard Associates Limited
Moneywise Financial Advisors Limited
Blue Ocean Financial Services Limited
Chadkirk Wealth Management Limited
Foreman Financial Services Limited
Strategic Wealth UK Limited t/a Gibro Wealth
Greyfriars Asset Management LLP
Active Investment Services Ltd
Total Financial Control Limited
Parklands Wealth Limited
St Martin’s Partners LLP formerly CUOX LLP
Omega Financial Solutions Limited
Serenus Consulting Limited
Bank House Investment Management Limited
Shah Wealth Management Ltd
Insight Financial Associates Limited
Choices – Your Mortgage Solutions Limited
C.I.B Life & Pensions Limited
Furness Financial Management
Archer Bramley Limited
Kingsway Wealth Management
The developments received significant coverage in the press when they were first completed, with celebrities being jetted out to the Cape Verde resorts.
However, a secret documentary programme dedicated to ‘’Pension Rip-offs’’ revealed how an unregulated pension introducer received 7% commission on cash investments in the hotel property scheme.
First Review Pension Services
The investigation highlighted that the The Resort Group also owned a call centre in Derby, known as Lifestyle Connections, which called people to arrange a pension review with a consultant.
Investors were then passed to a pension consultant at First Review Pension Services, also owned by The Resort Group, which provided them with a free pension review.
The person who carried out the review was not a regulated adviser so should not have given a recommendation.
The secret filming showed the consultant not only providing advice, but providing recommendations which were unsuitable for the clients.
Resort Group Investments
The unregulated consultant went on to give detailed information about a SIPP transfer with overseas investments in a property fund which claimed to offer 10% interest per year.
The consultant from First Review claimed that the property fund was made up ‘of a lot of property’ from The Resort Group development. He also said he was receiving 7% commission on cash investments in The Resort Group.
You May Be Entitled To Compensation
Lifestyle Connections and The First Review firms stopped taking new business from 30 June 2016.
The majority of our clients ended up investing in hotel apartments in The Resort Group, through a number of different introducers. But they all have got the same problems; they are not receiving the promised income and are struggling to get their pension investment back when requested.
Can I Recover Resort Group Investment?
• Reclaim My Money can assist in claiming this money back if you have moved your pension to invest in Resort Group. Contact Reclaim My Money today on 0161 823 4343 or complete the form below and we will get back to you.