British businessman allegedly took £300 million, nearly $452 million of investors' money without building the thousands of luxury homes that were promised, reported The Daily Mail.
Now the company Harlequin Property will face a freeze in assets and stock trades.
According to The Daily Mail, the money was supposed to go into building luxury homes in the Caribbean and Brazil, but only 300 properties were built. The former bankrupt David Ames is now accused of taking money of the British investors who were promised the developments.
Legal papers were handed to Harlequin Property entailing they freeze their assets as well as the assets of the leaders.
Harlequin Property was investigated and it was found the company didn't make the interest payments to loans. On the company website, they feature tennis player Pat Cash to promote their vision of delivering "excellent long term returns on your investment by selecting property developments in the most desirable locations that are proven to be experiencing growth that will continue indefinitely."
The Daily Mail reported that the Financial Services Authority, FSA, are giving hundreds of the financial advisors involved two days to confirm whether the investors they convinced have placed self-invested person pensions, SIPP, into Harlequin Property. They have three days to report to FSA
"This is a frightening situation for hundreds of investors, who could lose everything," a source told The Daily Mail.
"We are trying to establish the levels of pensions held with Harlequin," added an FSA spokesperson in an interview with The Daily Mail.
"Harlequin is aware there was an administrative error in relation to some payments - and we are instructed that these are in the process of being addressed and rectified," a Harlequin spokesperson told The Daily Mail. "Those affected have been contacted."
The major upset in this development is that there will be no protection for the investors because Harlequin Property is not FSA
Ames, 61, operates Harlequin from in Essex, England, with his wife Carol, 61, and son Daniel, 35, reported The Daily Mail. They said the story is "grossly misleading" and "politically motivated."
"Investors were promised totally unrealistic returns on their investments," said Gareth Fatchett of Regulatory Legal Solicitors, who is representing a group of investors. "Now the excuses are running out for Harlequin Property as to why they have not been able to build these resorts, not to mention what has happened to the money invested."
