The 79th Group – under investigation for “suspected widespread fraud”.

The news on Friday, February 28th, that 79th Group is under investigation for “suspected widespread fraud” will shock many investors. They placed their funds and trust in a company that now seems “too good to be true.”

Although 79th Group and its subsidiaries are still trading, recent events signal trouble. Authorities have arrested four people and seized assets at five properties. This has created uncertainty and concern for investors.

On Our Radar

Insolvency & Law have had 79^th Group on its radar for a number of years.  We conducted preliminary investigations and red flags were apparent to us in the shape of unsustainably huge returns on investments. Additionally, security trustees in the shape of Castle Trust & Management Services Ltd (in Liquidation). Multiple companies with limited history and a whistle blower exposing clandestine overseas boiler room operations, with dubious salary payment set ups for employees.  It sounds like a classic Ponzi scheme to us.

Too Good to Be True

The faces of 79^th Group (who we are assuming were the 4 people that were arrested) are David Webster, his sons Jake and Curtis and Natalie Bellis, the CEO.  The company bases its values on strong family ethics of loyalty and ethics.  The glowing reviews and smiling faces on the website, alongside the presence of reassuring enablers no doubt enticed many an investor to part with their savings in one or more of the millions of pounds of loan note products.  Up until now, it has all seemed too good to be true, with the true story exposing potential criminal activities on the horizon.

Educate the Investor

Part of our work at Insolvency & Law is to try and educate our readers on spotting red flags with unregulated investments. However, time and time again we find people drawn to glossy brochures, high pressure sales techniques and promises of unsustainably high interest returns.  Meanwhile the real red flags and buried evidence are often unnoticed or not discovered until too late.  We are therefore not surprised by the City of London Police press release on Operation MOLD and the subsequent arrests. 

Historically, our work upset 79^th Group who appeared to be incredibly brand sensitive. We received several legal letters before action through their lawyers Graham Small and Katherine Mills of JMW Group citing defamation and loss of earnings.  Naturally we did not flex to their unreasonable demands. 

Who Enabled Them?

79^th Group would not have got to where they are now without the full suite of enablers around them.  Introducers such as New Capital Link, who we have blogged on here and here have been instrumental in providing clients for loan note products who are impressed by the promise of security trustees such as Castle Trust & Management Services Ltd who we have blogged on here (and are due to update on soon).  Furthermore, 79^th Group use lawyers such as JMW Group to divert and squash any potential waves on the horizon that might expose their shady business set up.  We are positive more enablers will come to light as investigations proceed.

Contact Police

Full details are yet to be disclosed. However, potential victims are being asked to make contact with the police via this link here. 

Third Party Recovery

Insolvency & Law Ltd (I&L) has taken a legal assignment of certain loan note debts for enforcement and recovery.

We will be monitoring the situation with 79^th Group as it unfolds and continuing our own investigations.  We welcome hearing from any potential victims who invested in this company.  We will be investigating the possibilities of Third-Party Actions against regulated entities that have enabled 79^th Group, that could result in recoveries for investors funds.  Please get in touch with investigations@insolvencyandlaw.co.uk

Disclaimer: Insolvency & Law Ltd does not act as a firm of solicitors or as licensed insolvency practitioners. We do not carry out any regulated activities as defined under the Legal Services Act 2007 or the Financial Services and Markets Act 2000. All information and commentary concerning The 79th Group, including that published via our blogs and podcasts, is made available free of charge for informational and educational purposes only and should not be regarded as legal or investment advice.

In suitable circumstances, I&L may take legal assignment of loan notes issued by 79th Group companies and act in its own name and at its own cost and risk to pursue enforcement and recovery. Loan note holders assigning claims to I&L are not exposed to the cost of such action.

For enquiries concerning The 79th Group, please contact: investigations@insolvencyandlaw.co.uk