Inspired by the Disraeli phrase that there are 3 types of lies, "Lies, Damned Lies and Statistics", I aim to highlight misleading news stories based on statistics and dodgy extrapolation of data as well as warn about financial products that appear too good to be true, the future of UK politics and investments. "Nothing but lies, damn lies and statistics" has never been truer with headlines and adverts that bear no resemblance to the underlying data that produced them!
High Risk Bonds
There are many high risk bonds being advertises to consumers "retail investors". These products are not designed to be purchased by people that are not high net worth or sophisticated investors as they are such high risk. The adverts do not make this clear.
Where are the People and assets behind LCF & their agent Surge Financial?
London Capital & Finance owned a helicopter purchased by Andy Thomson.
This has now been seized and is being held at Shoreham Airport in Sussex.
According to the administrators one of the loans of £12 million was to a stables called Home Farm originally run by Spencer Golding but now owned by Sean Cubitt who was unable to provide any paperwork for the purchase of the company or for any of the horses.
There were originally 85 horses apparently with a combined values of £15 million according to the owners but when the administrators visited they could only see 35 that had a value of less than £10,000 each.
Sean Cubitt claimed that there was no bank account for the company that runs Home Farm. So a company with no bank account was loaned £12 million by LCF. Yet another example of the lies they told to investors about their lending process.
We understand that the valuable horses have been moved to Spain. Pro…
The administrators of LCF have issued their six monthly update on their progress. It's a lengthy document running to 50 pages so I thought it might be worth giving a summary of their findings and my thoughts on them so that bondholders have an idea of the key points made. As always with my blog these are my takeaways from the document, feel free to read it in full yourself if you want to confirm the details.
The administrators have given an outline of their costs so far and the total they expect by January 2021. This total comes in at £7.2 million which is slightly lower than their previous estimate. It sounds a lot and obviously is but there is a huge amount of work to track down assets in a company that has apparently deliberately tried to disguise the destination of money received from bondholders.
Basset & Gold are promoting a Bond Investment via Facebook that claims to be FCA regulated & authorised. This is exactly the sort of misleading promotion that the FCA have listed in their letter to companies today.
Basset & Gold is not FCA authorised to offer investments/bonds to the public. It is only authorised to offer corporate finance to commercial companies.
Make sure you are fully aware that there are 2 parts to Basset & Gold. The company that runs the promotion is B&G Finance Ltd and the company that sells the bonds is Basset & Gold plc. B&G Finance Ltd is FCA registered, Basset & Gold pl is NOT so the bonds are NOT FSCS protected