UK Financial Services Compensation Scheme suspends investigation into Wealth Connection
To date, the Scheme has not received any information from the Essex Police to help it continue with its investigation.
The UK Financial Services Compensation Scheme (FSCS) has published a rather dismal update regarding its investigation into Wealth Connection Ltd.
Since the summer of 2019, FSCS has been trying to discover if there are valid claims involving Wealth Connection Ltd, and understand its connection to Noisnep Capital Ltd.
Specifically, the Scheme has been trying to establish how investors became aware of Noisnep Ltd and its dealings with Wealth Connection Ltd. FSCS has also been examining how investors’ money was invested. But the body needs more information to determine if Wealth Connection Ltd owes a civil liability to its customers. Put otherwise, that a UK court would hold the failed firm responsible for a customer’s losses.
Last year, FSCS asked Essex Police to send it details of its investigation into one of the directors of Wealth Connection Ltd. To date, FSCS has not received any information to help it continue with its investigation.
The result is that FSCS is suspending its investigation into Wealth Connection Ltd. The Scheme notes that it may be able to restart it investigation if it receive this evidence.
FSCS opened its investigation into Wealth Connection Ltd after receiving complaints from customers who were advised to invest their pensions into various non-standard investments, some of which have become illiquid.
One of the directors of Wealth Connection Ltd was charged with fraud by Essex Police on January 20, 2016. The Director was sentenced on August 17, 2017 to six years in prison for fraud by abuse of position and two years for fraudulent trading, to run concurrently.
It was found that the Director had created a pension scheme in which he loaned money to investors. The loans, with tax relief, were invested in a property company that he was a Director of. The invested money was not used for its intended purpose and was instead used to fund the Director’s lifestyle.