Tag Archives: Gareth Fatchett

Gareth Fatchett of Regulatory Legal offers some advice to Harlequin victims

Harlequin Investor Update March 2015 from Regulatory Legal News on Vimeo.

Meanwhile at the Financial Services Compensation Scheme…

Financial advisers could be on the hook for hundreds of millions of pounds after the latest twist in the Harlequin saga in which the Financial Services Compensation Scheme (FSCS) has written down the value of the investment to nil.

In a document from the FSCS seen by Professional Adviser, dated 12 February and marked ‘compensation calculation’, the body lists the value of a Harlequin Property investment as £0.00.

A FSCS spokesperson confirmed the decision.

“Where applicable we will disregard the residual value in respect of Harlequin investments,” they said.

The move opens the floodgates for the FSCS to pay the thousands of Harlequin investors compensation on the full amount they put into the unregulated scheme, up to a £50,000 limit.

With around £400m originally invested in Harlequin, the compensation bill is set to run into hundreds of millions of pounds, putting it on a par with other investment disasters like Keydata and Arch cru.

As in those cases, the bulk of the cost of the compensation is likely to be borne by investment advisers.

Read the entire article: Spectre of £400m compensation bill looms as FSCS values Harlequin at nil

1,376 Comments

Filed under Barbados, Consumer Issues, Corruption, Crime & Law, Offshore Investments

Hope for some Harlequin victims? Investment victims’ lawyer going after Harlequin agents who misled about protection of funds

Harlequin & David Ames: Knew sales agents were lying to investors.

Harlequin & David Ames: Knew sales agents were lying to investors.

“After learning that some of his agents were misleading investors, did Ames and Harlequin take steps to alert investors? Now there is a question.”

Some agents and financial advisers selling Harlequin Property pre-March 2009 were telling clients that their investments were protected in a solicitor’s client account. This according to the UK law office representing a group of disgruntled Harlequin investors.

Gareth Fatchett... Pit Bull, lawyer or both?

Gareth Fatchett… Pit Bull, lawyer or both?

Talking to Barbados Free Press, Gareth Fatchett of Regulatory Legal Solicitors explained “It is clear that Harlequin identified instances where agents were telling people that a solicitors client account was being used to protect their monies.“

Mr. Fatchett also provided a clue that his law office intends to go after agents who lied to prospective investors, saying, “Many agents think that by using a limited company they can absolve themselves personally of any liability for a statement made either fraudulently or recklessly. It is clear that some agents / financial advisers made statements which were plainly untrue.  English law makes provision for limited liability protection to be removed when grossly reckless statements are made.”

Regulatory Legal Solicitors are reviewing advice files for investors who are concerned that they have been misled by agents. Mr. Fatchett is also looking closely at advice given by advisers, financial advisers and pension advisers.

Dave Ames and Harlequin knew agents were misleading prospective investors!

In a March 24, 2009 “Policy Statement”  from Harlequin to agents, Dave Ames told his agents to stop the practice, saying “I am aware that some agents have been suggesting to investors that we do ring fence the payments and this has to stop immediately to avoid investors being misled.” and “It is also not true to say that investors’ money is held in a solicitor’s client account.” (PDF of Ames’ statement here)

While it is shocking is that Harlequin’s Dave Ames was apparently aware that some of his agents were misleading investors, the natural question is: What did Ames do after learning of the lies? After learning that some of his agents were misleading investors, did Ames and Harlequin take steps to alert investors? Now there is a question!

No reply from Harlequin or Dave Ames    Continue reading

74 Comments

Filed under Barbados, Barbados Tourism, Business & Banking