The 79th Group – Police Fraud Investigation

What’s Happening, and How Did We Get Here?

Police Investigation: The 79th Group Under the Spotlight

It is now widely reported that four individuals have been arrested as part of an ongoing police investigation into The 79th Group. The City of London Police’s Fraud Operations Lead Force Unit is probing the company for suspected widespread fraud—a revelation that has shocked many investors who placed their trust and savings into the company. For them, what once seemed like a lucrative investment opportunity now appears too good to be true.

For potential victims, former employees, and those who introduced investors to the 79th Group (you know who you are—and if not, we’ll remind you in later updates), authorities are urging you to come forward. You can contact the police via this link here.

This blog will dig deeper into the 79th Group, its Loan Notes, the red flags, and the enablers behind the brand.

Who Are the 79th Group?

The 79th Group brands itself as a “diversified asset management company” operating across real estate, aviation, natural resources, and wealth management. Moreover, according to their marketing materials, they specialise in investments, acquisitions, and financial management.

The faces behind the company—and those we assume to be the four arrested individuals—are:

• David Webster (a former bankrupt—who deserves a closer look in future blogs),
• His sons Jake and Curtis, and
• Natalie Bellis, the company’s CEO.

The unregulated firm prides itself on a family-driven ethos of “loyalty and ethics”, reinforced by polished marketing, glowing reviews, and an air of credibility. Investors were drawn in by the promise of high returns and the reassuring presence of trusted enablers.

But now, the reality is unravelling—with the potential for criminal charges on the horizon.

Loan Notes: A 21st-Century Scam?

We have previously detailed the life cycle of a Loan Note scam (read it here), but let’s break down why these instruments are so often used in financial fraud:

1. Lack of Oversight = Easy Fraud

Unregulated Loan Notes are often issued without any real scrutiny from financial regulators or government agencies. This lack of oversight allows fraudsters to:
– Issue worthless loan notes without accountability.
– Fabricate investment opportunities with no genuine backing.
– Mislead investors with slick marketing and inflated promises.

2. Misleading Terms That Trap Investors

Scammers design Loan Notes with terms that appear irresistible but unrealistic, such as:

• Sky-high interest rate returns 
• Short repayment schedules that sound appealing but are unachievable.
• Deliberately complex wording to obscure real risks.

3. Security Trustees: A False Sense of Security

A Security Trustee is often introduced to make a scheme seem legitimate—but in many cases, the trustee is unregulated and lacks real oversight.

Fraudsters claim that assets are “held by a trustee”, but in reality, the:
– Assets don’t exist.
– Valuations are wildly inflated.
– Trustee lacks real enforcement power.

In many unregulated financial schemes, promoters introduce a Security Trustee to create an illusion of legitimacy and reduce investor scrutiny. In theory, a Security Trustee independently safeguards investors’ interests by holding collateral (such as real estate or assets) and ensuring compliance with loan terms. However, fraudsters often manipulate this role to deceive investors.

There are two common scenarios:

1. A trustee is regulated overseas in a jurisdiction with little recourse, such as Gibraltar.
2. A trustee is entirely unregulated, meaning no professional indemnity insurance and no true oversight.

By including a Security Trustee in marketing materials, fraudsters create a false perception of safety, leading investors to believe their money is secured—when, in reality, the opposite is true.

How Security Trustees Are Used in Loan Note Scams

• The “collateral” backing the loan may not exist, be highly overvalued, or be entirely fictitious.
• The trustee is presented as holding these assets, but in reality, they have little control or enforcement power.
• The scammer manipulates documentation to convince investors that their funds are secured—when in fact, the underlying assets are worthless or inaccessible.

This strategy reduces scepticism, making investors less likely to question the legitimacy of the scheme.

3. No Legal Recourse – A High-Stakes Gamble

In unregulated Loan Note schemes, investors have little to no legal protection if when go wrong. Without regulatory oversight, enforcing the terms of a Loan Note becomes extremely difficult. If the borrower defaults or the investment turns out to be a fraud, victims often have no legal recourse.

Scammers are expert at covering their tracks—they liquidate assets, shut down companies, or simply disappear, leaving investors with few options to recover their losses.

Act Quickly – Time is of the Essence

In the case of The 79th Group, time is critical. Victims should act now by contacting Insolvency & Law to review their personal circumstances and explore their recovery options before it’s too late.   By procrastinating and waiting to see what happens, the less likely victims are to influence the outcome, recover their investment, or limit their losses.

What Are the Red Flags with The 79th Group?

79th Group has been on Insolvency & Law’s radar for years, primarily due to its unregulated nature and relentless promotion of Loan Note products. As we dug deeper, a series of red flags quickly emerged:

Key Warning Signs:

• Unsustainable High Returns – Promising huge profits on unregulated investments is a hallmark of financial scams.
• Unreliable Overseas Security Trustees – The use of Castle Trust & Management Services Ltd (now in liquidation) raised serious concerns about investor protection.
• A Web of Companies with Limited History – Multiple entities were formed and dissolved, with unaudited accounts which we cover below.
• Dubious Overseas Operations – Evidence of boiler room-style setups and irregular salary payment arrangements for employees suggested potential financial misconduct.
• No FCA Regulation – Unlike legitimate financial firms, 79th Group is not regulated by the Financial Conduct Authority (FCA), meaning investors have no official protection if things go wrong.

Suspiciously Positive Reviews

Another red flag was the near-perfect online reviews. Until recently, not a single negative review existed—a rarity for a company of this size. No business, especially one handling millions in investor funds, keeps every client happy. Was reputation management at play?

Legal Threats – A Sign of a Cover-Up?

Historically, our work has unsettled 79th Group, which appears to be highly brand-sensitive. Interestingly, over time, we received multiple legal threats from their solicitors, Graham Small and Katherine Mills of JMW Group, accusing us of defamation and causing financial losses.

For a legitimate company, such an aggressive response seems excessive—unless, of course, there was something to hide. Instead of backing down, we continued investigating, determined to uncover the truth.

The Current Facts: Financial Red Flags in 79th Group

The Importance of Audited Accounts

In the UK, companies are required to undergo an audit if they meet at least two of the following criteria:
–Annual turnover: More than £10.2 million
– Assets: Worth more than £5.1 million
– Employees: More than 50 on average

Despite handling millions in investor funds, none of 79th Group’s companies file audited accounts. This is a major red flag, as audits provide an independent review of a company’s financial health, preventing fraud and financial manipulation.

If a company deliberately avoids audits, it raises the question: What are they trying to hide?

Why Would a Company Avoid Audits?

There are several possible reasons why a company might elect not to have its accounts audited, especially when dealing with large sums of investor money:

1. Avoiding Scrutiny of Financial Statements
   • Audits uncover financial discrepancies such as inflated revenues, understated expenses, or hidden liabilities.
   • If a company is misleading investors, skipping an audit allows them to maintain the illusion of financial stability.
2. Concealing Fraud or Financial Mismanagement
   • Auditors are trained to detect irregularities, including embezzlement, misappropriation of funds, and false reporting.
   • No audit = no independent oversight of financial activities.
3. Hiding Executive Compensation or Misuse of Funds
   • Executives may inflate company performance to justify higher bonuses or divert funds for personal gain.
   • An audit would expose discrepancies and potentially lead to legal action.
4. Manipulating Financial Timing
   • Companies can delay or avoid audits to manipulate when revenues and expenses are recognised, making financials look healthier than they actually are.
5. Cutting Costs – A Convenient Excuse
   • While audits can be expensive, any firm handling millions in investor money should be able to afford basic financial transparency.
   • Avoiding audits under the guise of cost-cutting is often a cover-up for deeper issues.
6. Creating a False Sense of Security for Investors
   • By avoiding audits, companies can hide their true financial status, attracting new investors before the scheme collapses.

79th Group’s Companies: Signs of Financial Instability

A deeper dive into 79th Group and its subsidiaries reveals a disturbing trend. While accounts have been filed on time (unlike other fraud-linked firms such as High Street Group or Billy Jackson’s ventures), the numbers tell a very different story:

• The majority of trading companies are balance-sheet insolvent, some by millions of pounds.
• Only six companies report any positive balances—and those hold trivial amounts (£1, £2, £90, or £100).
• In all cases, the directors have elected not to include a profit and loss statement, further limiting transparency.

Key Example:

• The latest accounts for 79th Luxury Living Limited disclose:
  • £31,644,142 in net advances to other group companies
  • £36,702,471 in net advances from related overseas companies (linked to the Webster family)

This raises serious concerns:
-Why is money being shuffled between subsidiaries and overseas entities?
– Are these real transactions, or a way to obscure financial losses?
-Why are large sums being moved from unaudited accounts with no profit/loss details?

With overseas transfers involved, tracing the money becomes significantly harder—a classic hallmark of financial mismanagement or fraud.

Summary: The Net Worth of 79th Group’s Main Companies

A breakdown of the financial status of 79th Group’s key entities reveals staggering insolvency.  Excluding the dormant companies and the recently incorporated companies yet to file accounts, here is a breakdown of their respective net worth.

Company Name		Net Worth
79TH LUXURY LIVING LIMITED		-£21,760,514.00
79TH LUXURY LIVING FOUR LIMITED		-£9,012,111.00
79TH LUXURY LIVING ONE LTD		-£4,724,544.00
79TH COMMERCIAL ONE LTD		-£4,327,659.00
79TH LUXURY LIVING TWO LTD		-£3,496,077.00
79TH GRP ONE LTD		-£2,971,520.00
79TH GRP ONE LTD		-£2,971,520.00
79TH GROUP CLIENT LTD		-£2,813,240.00
79TH LUXURY LIVING THREE LTD		-£2,255,348.00
79TH LUXURY LIVING FIVE LTD		-£1,593,872.00
LUSSO TESORO LIMITED		-£864,688.00
The 79TH GRP CLIENT LTD		-£337,187.00
79TH LUXURY LIVING (LILLEY) LTD		-£285,460.00
79TH GRP THREE LTD		-£121,555.00
SEVENTY NINTH CLIENT LTD		-£17,856.00
79TH COMMERCIAL TWO LTD		-£252.00
79TH LUXURY LIVING (KIRKLAKE) LTD		-£35.00
THE 79TH GRP LIMITED		-£20.00
79TH CLIENT LIMITED		£1.00
79TH GRP TWO LTD		£1.00
79TH LUXURY LIVING (BIRKENHEAD) LTD		£2.00
79TH LUXURY LIVING JUBILEE ROAD LTD		£90.00
79TH COMMERCIAL THREE LTD		£100.00
SEVENTY NINTH UK LIMITED		£1,097,187.00

This is a total in excess of £56 million.

Arrests, Weapons, and Cash – Plus a Statement from 79th Group

Contrary to rumours, authorities arrested the suspects in Merseyside (not Dubai). They seized weapons, cash, and luxury watches, further intensifying the case.

Officials released those arrested on bail, meaning they may or may not have faced charges. However, if they were not charged at this stage, it simply indicates that investigations are ongoing.

79th Group’s Statement – More Questions Than Answers

79th Group released a statement, but rather than reassuring investors, it raises further concerns:

“The Seventy Ninth Group categorically denies any wrongdoing following claims recently made public by the City of London Police. Since the events of last week, we have been working diligently with our legal advisers to address the claims made as part of the investigation, while also providing information to business partners and other stakeholders. The company has also appointed independent forensic accountants to conduct a comprehensive review of the business. The Seventy Ninth Group remains committed to servicing its clients in the UK and across the globe.”

 Key Issues with This Statement:

• Who are the forensic accountants and legal advisors? No names are provided, making verification impossible.
• “Committed to servicing clients” – Yet, investors are left in limbo with no clear answers.
• No mention of the arrests or the seized assets, suggesting an effort to downplay the situation.

Rather than easing investor fears, this vague and unverifiable statement does little to steady the ship.

Who Enabled 79th Group?

Behind every unregulated investment scheme is a network of enablers who lend credibility, provide services, or actively promote the company. Here’s a closer look at some of them.

1. Security Trustees

• -Castle Trust & Management Services Ltd (in Liquidation) – Former security trustee for 79th Group. 

• T&T Trustees Ltd – A regulated Gibraltar-based firm currently providing trustee services to 79th Group.
   
• Blue Water Capital Ltd – A UK-based, unregulated trustee services company that has worked with 79th Group in the past.

2. Trustpilot – A Reputation Management Tool?

We believe Trustpilot (perhaps unwittingly) has enabled 79th Group by allowing a flood of five-star reviews. The question remains:
– Have these reviews been properly verified?
-Are introducers or insiders posting fabricated reviews?

This wouldn’t be the first time –The Mirror recently exposed introducers like New Capital Link and accused them of review manipulation.

3. The Introducers – Who Brought Investors to 79th Group?

 -New Capital Link have been a major introducer of clients for 79th Group’s Loan Note products. Read our previous blog here and here.

– Intelligent Distribution (Sonali Craddock & Mark Kidd) – Former High Street Group promoters who also marketed 79th Group products.

• Curiously, their website recently disappeared, and they have all but vanished from social media.
• Did they see this collapse coming?
• A Multi-Jurisdiction Firm with Ties to 79th Group – A company with offices in Hong Kong, Singapore, and the UK (filing dormant accounts in Companies House) has a close relationship with 79th Group.  We are currently investigating their role.

4. The Lawyers – Silencing Critics?

 JMW Group – 79th Group’s go-to law firm, used to:

• Suppress negative reports and legal threats against critics.
• Certify security trustee documents at Companies House, indicating deep involvement with 79th Group’s financial structure.

As investigations intensify, more enablers are likely to emerge. Additionally, The City of London Police urges all individuals and firms involved to come forward via this link.

What Should Loan Note Holders Do Now?

Time is critical. If you have purchased a  79th Group loan note, you should:

 Contact Insolvency & Law immediately to discuss your recovery options:
[email protected]

If you have concerns about a company or individual and need a fact-based investigative report, reach out to: [email protected]Owed money by a company that refuses to pay? Discuss your options with Insolvency & Law:
[email protected]