If Something Looks Too Good to be True it Usually is
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Hirst, an ex-Allied Dunbar salesman in Mallorca, assured other members of the Mallorcan ex-pat community that as a result of his "working the Dow Jones index" and without the overheads borne by traditional investment banks, he could consistently outperform the market and offer spectacular guaranteed results. |
While all appeared to be going well for a time, in recent months investors found themselves unable to recover even part of the savings they had lodged with Hirst. The suggestion is that upwards of £20 million has gone astray.
Whilst on the face of it this scenario will be greeted with scepticism by many, it is remarkable how readily investors came forward – in many cases on the advice of a UK accountant with FCA status. If nothing else, it goes to show that care has to be taken by investors offered schemes of this nature, especially when approached overseas.
Worried investors have approached our Private Client department, which looks after the affairs of a number of ex-pats. As a result, we have now put together an action group in Mallorca, and are currently working with Grant Thornton with the aim of pursing Hirst & Gilher to recover at least part of the funds.
This case raises a number of issues, one of which is the relatively unregulated and innocent market in some of the jurisdictions where expats live.
Perhaps the recent appointment of an EU commissioner with the specific remit to put in place a pan-European financial service authority will pay dividends. But for the moment, investors need to remain vigilant, whether here or overseas, when offered investment products which appear to offer extraordinary returns.
If you have any concerns about any investment schemes or business propositions being put to you, contact Jonathan Silverman (jtrs@silvermansherliker.co.uk) or John Abbott (jca@silvermansherliker.co.uk) on +44 (0)20 7749 2700.
See also our dedicated Mallorcan ex-pat legal site: www.mallorcauklegal.com.
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