The Background to the Claim
Ethical Forestry was promoted as a SIPP-suitable investment by a Bournemouth provider, but they have now gone into liquidation. Unfortunately the scheme was under-pinned by thousands of UK investors and savers, all of whom will probably has lost a substantial amount of money set aside for their pension and retirement planning.
Thankfully the Expert Pension Claims’ solicitors can help and support people who were signed up to this SIPP scheme, and one simple phone call or email into our team could get things started for you. Please don’t delay, as time is of the essence when it comes to claiming for Ethical Forestry investment compensation.
What Was Ethical Forestry Ltd?
The company was mainly known as Ethical Forestry (compensation claims could me made against them), but also traded under other names including:
These names all traded, sold, and managed a group of Melina tree plantations in Costa Rica.
How Ethical Forestry Was a Mis-Sold SIPP Investment
The team at Ethical Forestry promised investors, savers, and those with pension and retirement savings, that the scheme would return a high-yield profit over time. Details of the scheme (which was advertising as “Sustainable Timber Management”) required SIPP investors to purchase 600 tree plots for £18,000.
They were then led to believe that this mis-sold investment could return over £100,000 after a 12 year period at which point the trees had been harvested and sold-on. Evidently this would be a fantastic sounding opportunity to many people wishing to enhance their retirement or investment portfolio.
But now, given the liquidation proceedings, many of those investors like yourself are looking to claim compensation for the mis-selling of this particular SIPP scheme. If you have been affected and would like to explore your options relating to Ethical Forestry compensation claims then please contact us now for no-obligation advice.
Why Did Investors Put Money into the Scheme?
The reasons that so many people were ready to invest their SIPP into this scheme, was because it sounded so appealing at the time. After all, who wouldn’t want to do their bit for the environment whilst making large financial returns on their investment?
Ethical Forest was sold to people as meaning they could put their SIPP to better use, whilst at the same time improving their financial planning options for retirement. For independent financial advisors, the scheme was ideal as it was actually quite an easy sell.
However, now that promise has come back to haunt many IFAs, with the dark shadow of Ethical Forestry investments compensation claims now looming due to this SIPPs mis-selling case.
How Was Ethical Forestry Mis-Sold into SIPPs?
Because the trees that were part of the investment were Melina trees, it looked pretty secure. This is because they can grow to impressive heights over a 12 year period, and don’t suffer the same as other trees in Costa Rica from humidity and moisture changes – meaning that Melina trees would stand the test of time before being harvested, where the money was realised.
But, things of course are never that simple in reality. The Melina trees that made up the bad Ethical Forestry investments were of course prone to other risks such as naturally occurring weather issues, disease, pests, political shifts in Costa Rica, management and ownership issues and more.
Now, when the investment was sold into pensions and SIPP investors, these risks were never truly explained, or even understood by the majority of independent financial advisors to their clients.
It wasn’t just about the risks involved though, some people were plainly not suited to this type of investment. In many cases we have heard about people in the UK who were sold Ethical Forestry investments who should never have been exposed to this type of financial risk. If you are one of those people then you should make a claim as you deserve justice and compensation.
As a result, it’s a classic case of mis-selling. And in cases where investments have been mis-sold such as Ethical Forestry, compensation can be sought and claims can be brought.
However, as the investments are off-shore any compensation claim on stakes in Ethical Forestry will need the support of a legal team, such as our solicitors, as they are not covered by the Financial Ombudsman.
How the Mis-Selling Story Emerged
The problems with the Ethical Forestry investment first emerged in a story in the local Bournemouth Echo newspaper. To quote the paper the article stated that:
“Twenty eight people were sent home from their jobs at a Bournemouth company and told they would be redundant by Christmas. The staff worked at Holdenhurst Road for Ethical Forestry, which specialises in sustainable forestry development from an office in Costa Rica. The affected staff worked in a call centre, which was shut down after risk management advice from lawyers.”
This was certainly the first sign that there were some huge issues with this SIPP investment company and was a sign of things to come with the Ethical Forestry compensation claims that would come about in 2016.
Claim Ethical Forestry Investment Compensation
If you were one of the thousands of people who invested then it could be possible that you can recover some of your money. This is particularly true if your IFA mis-sold the Ethical Forestry SIPP plan to you.
If you want to start a claim, or simply want to know what your options are with regards to getting your money and investment back from the Ethical Forestry scheme, you should contact our team of solicitors today. Either phone us, or complete the form you see on the website.
Our solicitors work on a no win no fee* agreement, and also offer free phone consultations to all Ethical Forestry investors and victims of mis-selling. If you want to discuss a potential claim for compensation call then get in touch today.
As a post-script to this issue, if you are wondering whether you still own the trees that you invested in, then the answer is yes. The liquidators of Ethical Forestry are currently looking to find a new management team and have already written to the existing investors with four available options. You should have received this information.
Can You Claim for Compensation?
If you are still wondering what you should do about your investment in Ethical Forestry then we would love to hear from you. We understand how appealing the offer of an Ethical Forestry SIPP investment was at the time.
We also understand that your IFA was probably in receipt of a very large sale commission for recommending you invest in Ethical Forestry as part of your SIPP investment. Evidently it was probably a mis-sold investment.
At Expert Pension Claims we can help you seek damages and compensation for a claim for Ethical Forestry investment mis-selling.
If you want us to act on your behalf, or simply want to know what your options are then please get in touch with us now so we can make a SIPP claim on your behalf.