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.
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.
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.
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
Insight Financial Associates Limited
Choices - Your Mortgage Solutions Limited
C.I.B Life & Pensions Limited
Furness Financial Management
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.
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.
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.
