Care home investment schemes
"You guys really came through for us on this, my utmost thanks and because of you and Pradeep’s team we have a chance to begin life again."
Private client
Cripps have acted for hundreds of investors in care home investment schemes.
The schemes were marketed to investors by sales agents as providing safe and guaranteed high returns (usually in the region of 10% per annum) with a guaranteed buy-back in excess of the purchase price after 5 or 10 years.
The schemes have failed and are likely to have been fraudulent Ponzi schemes. The investors have lost millions of pounds collectively.
Cripps brought claims for the investors against their conveyancers. The conveyancers owed obligations to advise the investors on the risks inherent in the care home schemes these include the fraud risk and the risk that the schemes are illegal unregulated collective investment schemes under s 235 of the Financial Services and Markets Act 2002.
None of the investors would have invested in the care home schemes if the conveyancers had provided competent advice in respect to the legal risks.
Qualia Care
Cripps have successfully acted for over 200 investors who had lost millions collectively due to a failed care home investment scheme known as ‘Qualia Care’.
The Qualia Care scheme turned out to be a Ponzi scheme and an illegal unregulated collective investment scheme. The Financial Conduct Authority brought proceedings against the operator of the scheme in the High Court.
We brought a claim against our clients’ conveyancing lawyers for failing to advise on the risks that were inherent in care home schemes. The claims settled successfully on confidential terms in July 2024.
MBI Properties
Cripps have acted for several groups of investors who invested in care home schemes operated by MBI Properties. MBI sold off-plan property units of care home rooms to investors in return for high returns and a guaranteed buy back.
The scheme turned out to be fraudulent, many of the properties were never built and millions of investors’ funds have disappeared. The director of the schemes is currently being investigated by the SFO.
Many of these cases have successfully settled on confidential terms while others are still progressing.
“Just a quick word to say thank to you all for your very professional work and significant efforts which have lead to a highly successful outcome in this claim. All very much appreciated. “
Private client