The Resort Group: Shadows Over Investor Sunshine

Investment

The Resort Group, synonymous with luxury holiday resorts in Cape Verde, has become a focal point of investment scrutiny. Established in 2007 and registered in Gibraltar, it promised substantial returns to UK investors via hotel room investments and fractional shares in rooms. Notably, the Group's resorts included Tortuga Beach, Dunas Beach, Lana Beach, and TUI Sensimar Cabo Verde.

Despite the initial splendour and allure, overshadowed by celebrity engagements, the enthralling façade concealed an intricate web of disappointing returns and impenetrable investments.

The Resort Group's investment scenario became considerably intricate, with the involvement of pension providers like GPC SIPP and Greyfriars and financial advisors like Active Wealth (UK) Ltd. The Financial Services Compensation Scheme (FSCS) began to unravel this tangled web in July 2019, collaborating with GPC's administrators to understand the diligence executed by GPC in allowing specific pension investments. This collaboration aimed to ascertain any failures in due diligence that affected the investors adversely.

The investment options in The Resort Group were diversified, ranging from whole hotel rooms to fractional shares in rooms, with returns advertised up to 18% over three years. These were largely based on rental income and included a variety of corporate bonds. However, the real issue surfaced when these advertised returns remained unfulfilled and investors found it impossible to reclaim their pension investments.

The Intricacies and Implications

Investors were allowed to purchase a unit in a hotel complex outright or become fractional owners. These fractional owners were, disturbingly, entrapped in companies without direct ownership of any land in Cape Verde. Shockingly, in numerous instances, investors were charged hefty fees for property purchases that weren’t even constructed yet. These disappointing returns and elusive exit strategies left pension investors stranded in SIPPs with declared nil value on pension assets invested in fractional holdings.

The bond companies related to The Resort Group, namely TRG Bond Companies I to VII, involved extensive capital loaned to The Resort Group plc (TRG), adding more complexity to the investment scenario. However, it was not just the intricate investment bonds that raised eyebrows, but the sheer magnitude of the investments in question, culminating in millions across the multiple bond companies.

Heightened Scrutiny and Revelations

The intense scrutiny intensified with revelations after BBC One’s "Pension Rip-offs" documentary: Panorama, which unveiled an unregulated pension introducer earning a 7% commission on cash investments in the hotel property scheme. It threw light on The Resort Group’s subsidiaries, Lifestyle Connections and First Review Pension Services, showing how investors were manoeuvred through unregulated consultations into seemingly profitable SIPP transfers. Unfortunately, these consultations misled investors with unsuitable recommendations, detailing the property fund’s composed largely of The Resort Group development, concealing the high-risk nature of such investments.

The Resort Group, being unregulated, would typically not qualify for protection from the Financial Ombudsman or the Financial Services Compensation Scheme. However, the involvement of UK regulated advisers who have since failed has led the FSCS to accept claims, revealing that they have received over 2,500 claims associated with The Resort Group.

The Web of Advisors and Introducers

Several financial advisors, over 50, are implicated in claims related to The Resort Group, with many no longer operational. Among these, CIB Life & Pensions held the lion's share of the claims, with its name appearing on more than 1,000 claims related to The Resort Group.

Numerous IFs held responsible include:

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 Managemen

It’s worth noting that Consumer Money Matters Limited is another introducer company associated with mis-selling cases involving The Resort Group, further emphasising the extensive network of entities interlinked with the failed investment initiative.

Seeking Resolution: How CP Financial Claims Can Assist

CP Financial Claims stands as a beacon of hope for those entangled in the labyrinth of The Resort Group's investments. We understand the intricacies and implications surrounding mis-sold claims in relation to The Resort Group, and our team is dedicated to unraveling this complex tapestry to bring solace to the affected investors.

With extensive knowledge and a dedicated team, CP Financial Claims delves deep to assist affected individuals in navigating through the repercussions of their investments, in this case, in The Resort Group, aiming to alleviate their financial predicaments. Our mission is to provide comprehensive support and guidance to those who have found themselves ensnared in the intricate web of The Resort Group investments.

What Should You Do?

If you've transferred into a SIPP and invested in The Resort Group or if the names GPC SIPP, Greyfriars, or Active Wealth (UK) Ltd ring a bell, and you feel you might have been affected, please enter your details below for a free, no-obligation chat.

Have you Been Affected?

At CP Financial Claims, our goal is utmost transparency. You'll only be charged a fee if we successfully secure financial redress for you. The success fees can range from 15% to 25% of your settlement, depending on the amount. For more information, click here.
In the event that you pursue your claims until the end but they turn out to be unsuccessful, you won't owe any payment. If you decide to cancel your claim after the 14-day cooling-off period but before the process concludes, there may be a cancellation charge. To learn more about cancellation fees, click here.

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