£77m is a lot of investor capital, and many investors in US property reclamation scheme InvestUS will likely be wishing they hadn’t contributed to it, as CityWire continues to expose the gravy train that led to some investors missing their interest payments for more than 2 years.
Registered in the Seychelles and run by Stephen Wright, it appears that many investors took advice from Wright’ previous company, Cherish Wealth Management, now entering voluntary liquidation.
Cherish Wealth Management provided regulated financial advice on an execution only basis for many InvestUS clients, including on client suitability.
But as Cherish heads towards liquidation, Wright has faced questions about a potential conflict of interest between the investment he now heads up, and the IFA he founded that facilitated the investor pension transfers into the scheme.
However, Wright denies any conflict of interest, insisting that he was not part of the business once it began trading, having left the firm in 2011.
Delay in payments
As reported again by Citywire, Wright says that some investors have not yet seen their promised returns due to a dispute between InvestUS and Right Buy Properties – the firm managing the houses purchased with investor funds which are supposed to be refurbished, let and then sold to generate the returns.
Wright says that when checking up on progress, he discovered there was a discrepancy between what Right Buy Properties said it was doing and what was actually happening.
Having won a law-suit against Right Buy Properties, Wright insists investors will be repaid their funds but did not provide a time-scale in the quotes in CityWire.
Invested? What you can do
If you invested your pension money through a SIPP into InvestUS or through Cherish Wealth Management, we’d love to hear from you!
We’re currently making thousands of mis-sold SIPP and investment claims on behalf of our clients, and payouts are happening regularly, too!
Just head over to our mis-sold pensions page and drop us a line – we’ll call you back for a FREE consultation to discover if you have been mis-sold.