Are you one of thousands of investors who have been misled in relation to The Dolphin Trust investment scheme?
UK residents have entrusted up to an estimated £600m of pension savings with The Dolphin Trust, but many are yet to see their money after the scheme has failed to deliver on promises.
Who are The Dolphin Trust?
The Dolphin Trust is an investment scheme that specialises in the refurbishment of listed buildings in Germany.
The Dolphin Trust, as it was known in April 2019, claims to buy derelict buildings in prime locations which it then redevelops into luxury apartments. It is now known as German Property Group (GPG).
The property group has borrowed an estimated £600m from UK investors, and told these investors that their money would be safe because of the “First Legal Charge” they would get against the property – a document which entitles the investor to claim their money back from the sale of the property if the borrower fails to repay.
Dolphin trust hit the headlines in May 2019 when a BBC report found that many investors had not received any of the returns on investment they had been promised.
Many of the people who have lost money are not experienced investors, and have invested their entire life savings into The Dolphin Trust. The BBC report tells of warehouse worker, Roy from Kent, who transferred £35,000 from his pension and expected to receive money back in March 2019. This never came.
How have The Dolphin Trust been potentially negligent?
In many cases, pension holders who invested into The Dolphin Trust were told by unregulated salesmen working for separate companies, and paid 20% commission at the time, that they would almost double their money if they lent their savings for five years to Dolphin Trust.
The scheme was often recommended to individuals by an Independent Financial Adviser (IFA) who advised their clients to invest via a SIPP (Self-Invested Personal Pension).
The bonds within The Dolphin Trust are not regulated with the FCA.
In addition to this, it has been reported that none of the investors have received the “First Legal Charge” document as of yet.
Investors were also sent a list of buildings which The Dolphin Trust claimed to have secured for the project. Visits to those buildings, however, show that only one of the buildings was finished with another being nowhere near complete, and another where no work had started despite The Dolphin Trust owning the building for more than five years.
It is clear to see that there have been many failings on The Dolphin Trust/German Property Group’s part, with £600m of investment from UK residents.
What do to do next if you have invested in The Dolphin Trust?
If you think you are the victim of a mis-sold SIPP from The Dolphin Trust, or if your SIPP is not performing as you were told it should be, then please get in touch with our specialist mis-sold SIPP lawyers to see if we can claim compensation for you.
Smooth Commercial Law have vast experience in dealing with mis-sold investments, and in particular, mis-sold SIPP investments. We can help you receive compensation.
To make an appointment or to find out more about how our SIPP claims experts can help you make a claim for compensation for a mis-sold SIPP, telephone the number at the top of this page, email us at firstname.lastname@example.org or complete our quick online enquiry form and one of our mis-sold SIPP claims experts will get in touch with you promptly.