Investors in a property firm are on the brink of financial ruin and face homelessness after the group reneged on its interest payments and pressured them to waive rights to withdraw their cash.
DIY savers put more than £50m into high-risk loan notes with The High Street Group, attracted by the promise of 12pc annual returns and 22pc after seven years. However, the £1.5bn investment firm has defaulted on its interest payments and blocked investors from redeeming their money despite guaranteeing yearly access, a Telegraph Money investigation has found.
Last week its founder and chairman, Gary Forrest, left the company.
12% a year on notes. Bit of a red flag, no?
Wouldn’t it be normal to invest a modest amount of your available cash into something like this, knowing that the high yield comes with high risk? Surely if you were to put all of your eggs in a basket like this you would deserve to end up destitute.
There’s a cliche for every situation :
‘If it seems too good to be true, it probably is.’
More red flags than a Chinese People’s Liberation Army parade.
It is a con game.
Without a detailed and precise plan as to how these massive returns could be gained (and if such a plan existed and was revealed everybody would be doing it) no one but a mark would put a penny in. Let alone everything to the point of losing your home.
So the victims are mugs who invested without any grasp on reality while mesmerised by bullshit vistas of phantom wealth. An old old story indeed..
Serves ’em right almost. Prob a few silly old Granny’s in their ranks. But should still have more sense.
“An undertaking of great advantage; but no-one to know what it is.”
The wonder of capitalism and free markets is that they generate great gobs of money for people who have not the least idea how to manage it. And so sharks steal it from them.
It’s very sad – after all, many of us will age into senility and gullibility. And we can’t all become President of the USA.
Has the P3 concluded that therefore people should only be allowed to invest in Green New Deal bonds or the like, yet?
@Rowdt
‘There’s a cliche for every situation’
Is that a cliche too? 🙂
DIY savers put more than £50m into high-risk loan notes
Well, that was very silly, wasn’t it? I do have sympathy for people who’ve been ripped off, but this sounds more like greed leading them astray. Who on earth puts their house on a debt investment that pays 12%, bearing in mind a random punter can waltz into a bank and borrow at 3%?