The Solicitors Regulation Authority has issued a warning to Allansons investors concerning a follow-on fraud which has recently been started. The warning can be viewed below.
Warning: Allansons LLP – Litigation Funder Update
2 September 2019
Allansons’ litigation funders have received a call from an individual purporting to be from or to represent the Solicitors Regulation Authority.
What is the scam?
We have been informed that some of Allansons’ litigation funders have received a call from an individual purporting to be from or to represent the Solicitors Regulation Authority.
We understand that the caller says that to secure the return of your investment, you must pay him 5% of the total funds invested.
The caller has identified himself as John Holt / Jonathan Holt and the number from which these calls have been received is (0207) 183 4172. It is possible, however, that different numbers and identities are being used.
Is there a genuine firm or person?
John Holt / Jonathan Holt does not represent the SRA. These calls are not made on behalf of the SRA and are not genuine. Please beware if you receive such a call.
Follow-on frauds are very common. We see them all the time. They are co-ordinated from the UK by a small group of people who are behind a very large number of investment scams. We reported the man who we believe to be the ringleader to Essex Police in February 2018. The scam team is very well organised and includes back-office service providers (they do all the admin for the scammers), sales agent networks, escrow companies, solicitors, accountants and, in our opinion, a friendly insolvency practitioner who helps scammers liquidate their companies very quickly without undertaking a proper investigation.
The sales network sells the scam product to investors. When the investment is about to be exposed the scammer will take it to the friendly liquidator who will help the scammer dissolve everything and act as ‘protector’ for the scammer. Their accountants help to hide the money and their solicitors write threatening letters to any organisation which causes trouble for the scammer.
Their scam team already has all the contact details of investors. It is commonly believed that these lists, known as ‘suckers’ lists’ to those in the trade, are sold on to the highest bidder. That may be true in some cases when a salesperson leaves a company and takes the list with them for personal use, but we believe it isn’t true in many cases.
Phase One for this scam team is to sell the initial scam product. They demand a high commission for their efforts, but they have to pass some of the money on to the project company.
Phase Two is to contact investors with their follow-on fraud. In Phase Two they can keep all the money because the project company no longer exists.
It has proven to be a very successful business model because they repeat it time and time again. We believe they were involved in the Allansons Litigation Funding project.
To view our previous post on Allansons LLP please click HERE