A Professional Adviser article reveals that Exmount Commercial Developments, which disappeared with investors' money in the summer of 2019, has continued to scam investors even after disappearing.
The couple had invested their life savings with Exmount in 2018, after they were promised between 9.12% and 10.35% annual returns on their investment with three- or five-year bonds. The couple began investing a small amount of money, but over the course of a year took out five mini-bonds with Exmount for a total of £45,000.
The pair tried to redeem the unregulated bonds in early August 2019. According to Chan, a company representative asked the couple to pay a £606 exit fee. The pair paid, thinking they could get their capital back, but were then told there had been an error, and were asked to send an additional £606.
Exmount Commercial Developments (a trading name of Exmount Construction Limited) offered 3 and 5 year bonds paying 9.12% and 10.35% per year. I reviewed the bonds in April 2018.
According to both investors and Jade State Wealth, Exmount Construction has stopped paying interest and is failing to respond to phone calls.
Jade State Wealth had been hired by Exmount to act as Security Trustee. However, according to Jade State, Exmount failed to comply with anti-money-laundering and liquidity requirements and consequently Jade State withdrew its services in February 2018.
According to Jade State, Exmount has continued to solicit investment regardless while still telling people that the investment was overseen by Jade State. Some of them have fruitlessly contacted Jade State asking where their money is.
Asset Backed Management Limited, an unregulated introducer which took commission of between 27.5% and 40% for promoting unregulated investments to the public, has been shut down by the Insolvency Service.
The Insolvency Service announces:
Investigators were able to establish that Asset Backed Management is not, and has never been, regulated by the FCA.
Clearly nothing gets past the Insolvency Service's investigators. Including a disclaimer at the bottom of Asset Backed Management's own website which stated "Asset backed management [sic] is not regulated by the Financial Conduct Authority. It is not authorised to offer advice on investments, whether regulated or unregulated."
Exmount Commercial Developments offers unregulated bonds paying 9.12% per year for 3 years and 10.35% per year for 5 years, paid quarterly.
The bonds can be terminated early halfway through the term (1.5 years for the 3 year bond and 2.5 years for the 5 year bond) at 45 days' notice for a nominal admin fee of £75 + VAT.
Continue reading for a review of Exmount Commercial Developments' bonds.