Roger Allanson, owner of the eponymous Allansons LLP unregulated litigation funding investment scheme, has been struck off as a solicitor and ordered to pay the Tribunal's costs of £103,868.
The allegations against Allanson were:
- That the marketing material used to solicit investment into the scheme was misleading.
- That the monies invested were "misused", with either 24% or 4% of each investment retained by Allansons, and a total of £347,000 of payments made either to introducers or Allanson himself that breached the solicitors' Code of Conduct.
- That Allanson failed to monitor the mortgage overpayment claims that underpinned the investment scheme.
- That Allanson sent "inappropriate" emails to an investor who was querying the status of his investment.
- That Allanson failed to maintain adequate accounting records and client account reconciliations.
- That Allanson failed to maintain client ledgers for the over 4,000 clients whose cases against their mortgage lenders underpinned the investment scheme.
Allansons investors watching Companies House hoping for some clue as to where £20 million of their money went will have to wait a bit longer, as Allansons LLP again used the one-day-trick to avoid filing accounts within the deadline.
The Companies Act requires private companies to file accounts within nine months of their accounting year ending, but due to a loophole in UK company law, you can extend the deadline by shortening your accounting period by a single day, which gives you an extra three months.
Allansons deployed this trick in August and now again on 18 November, meaning its last published accounts are now almost two years old.
The Solicitors Regulation Authority has warned investors in the stricken Allansons litigation funding investment scheme that an individual is falsely purporting to represent the SRA as part of a recovery fraud.
Allansons LLP ran a litigation funding scheme offering returns of up to 50% over a 6-18 month term, which third-party introducers claimed was "low risk" and "100% secure". By September 2018 investors were complaining about the lack of any returns, and in May 2019 the SRA shut Allansons down.
The individual, named "John / Jonathan Holt", claims to represent the SRA and that investors will get their money back if they hand over 5% of the total invested. Naturally if they hand over their 5% they will never see it again. The individual may be using other aliases.
Roger Allanson, former head of Allansons LLP, has hit back against the shut down of his unregulated investment scheme by the Solicitors Regulation Authority.
Allansons ran a litigation funding investment opportunity offering 50% returns which was, according to third-party introducers which solicited investments on Allansons' behalf, "zero risk" and "100% secure with FSCS".
Allansons, the solicitor firm behind an unregulated investment scheme offering potential 50% returns within a 6-18 month timescale, has been shut down by the Solicitors Regulation Authority.
According to The Bolton News,
The Solicitors Regulation Authority took the decision to close Allansons Solicitors, which had been operating out of an office Queens Buildings in Central Street, after ruling that its manager, Roger Allanson, had failed to comply with a number of regulations.
The sole partner of Allansons LLP, which runs an unregulated investment scheme offering returns of 50% within 6-18 months for investing in litigation funding, has been fined £17,000 (plus £10,000 costs) and been prohibited from acting as a manager or owner of an authorised solicitor over client money breaches.
Roger Allanson ran Allansons LLP as a sole practitioner until 2006, when he was joined by Mohamed Patel.
On 19 and 20 December 2018, the Solicitors Disciplinary Tribunal heard a series of allegations against Roger Allanson and Mohamed Patel in regard to their conduct over a period of six years:
Earlier today we reviewed the Allansons / Mortgage Audit Services opportunity to invest in litigation funding.
Allansons / MAS project a potential return of 50% should their cases succeed, and your money back if it fails via After The Event insurance - assuming that Leeward Insurance of Bermuda, the ATE insurer, agrees to pay the claim and has sufficient resources to do so.
Allansons' / MAS' literature is clear that this investment is not covered by the Financial Services Compensation Scheme. However, there are unregulated third party introducers promoting this investment as "High Returns with insurance and FSCS protection" and claiming that - via convoluted logic which we will review below - that the investment is covered by the FSCS, contrary to Allansons' / MAS' literature.
Allansons LLP, in association with Mortgage Audit Services Limited, are offering investors the opportunity to invest in "litigation funding" whereby investors fund the cost of legal action on behalf of a mortgage customer who has been overcharged by their lender due to "automatic capitalisation" of payments in shortfall.
Should the case succeed, Allansons promises a return of 5% of any award plus 30% of Allansons' base legal fees, which they estimate will provide a return of "approximately 50% on your money within 6 to 18 months."
Should the case fail, Allansons promise that your investment is covered by After The Event insurance.
Continue reading for a review of Allansons' / MAS' litigation funding opportunity.