What was Ethical Forestry Ltd?
The company was mainly known as Ethical Forestry Limited, but they also traded under other names, including:
- Ethical Forestry Holdings
- EF Forestry Management Ltd
- EF Sales & Marketing Ltd
- Ethical Forestry S.A
Each of these names traded, sold and managed a group of Melina tree plantations in Costa Rica.
The background to Ethical Forestry claims
Ethical Forestry in Costa Rica was promoted as a SIPP-suitable investment by Bournemouth company, Ethical Forestry Ltd (which voluntarily liquidated in 2015). The scheme was underpinned by thousands of UK investors, all of whom may have lost a substantial amount of money as a result of the mis-selling of this investment.
The company promised investors that the scheme would return a high-yield profit over time. Details of the scheme (which was advertised as “Sustainable Timber Management”) required SIPP investors to purchase 600 tree plots for £18,000.
They were then led to believe that this investment could return over £100,000 after a 12-year period, at which point the trees would have been harvested and sold on. Evidently, this would be a fantastic sounding opportunity for many people wishing to enhance their retirement or investment portfolio.
However, the problems with the Ethical Forestry investment first emerged in a story in the local Bournemouth Echo newspaper:
“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 issues with the company and of things to come with the Ethical Forestry compensation claims that would first come about in 2016.
Even now, some time after the ethical forestry liquidation proceedings, many investors are looking to claim compensation for the mis-selling of this particular SIPP scheme.
Thankfully, the Expert Pension Claims team can help and support people who signed up to this SIPP scheme, and one simple phone call or email to our team could get things started for you. Please don’t delay – time is of the essence when it comes to claiming for Ethical Forestry compensation.
What went wrong with Ethical Forestry investments?
Investors were told all about the benefits of Melina trees being used as part of the scheme. Melina trees can grow to impressive heights over a 12-year period, and don’t suffer from humidity and moisture changes the same as other trees in Costa Rica. This meant that they would stand the test of time before being harvested.
Of course, things aren’t always that simple in reality. The Melina trees that made up the Ethical Forestry investments in Costa Rica were, of course, prone to other risks, such as naturally occurring weather issues, disease, pests, political shifts in Costa Rica, and management and ownership issues. The list goes on.
When the investment was sold to SIPP investors, these risks were never truly explained, not to mention barely being understood by the majority of independent financial advisors.
What’s more, 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 believe that you are one of those people then you should consider pursuing a claim.
Are you eligible for Ethical Forestry investment compensation?
If you were one of the many people wondering what you should do about your investment in Ethical Forestry then we would love to hear from you. Your IFA was probably in receipt of a very large sales commission for recommending you invest in the Ethical Forestry scheme, which could fall under financial mis-selling and you may be able to recover some of your money.
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 scheme, contact our team today. Either phone us on 0161 968 0768, or complete the form to the right. We only charge a fee if your claim is successful – for the price of a phone call you can get free no-obligation advice about your situation. If you want to discuss a potential claim for compensation then get in touch today.
For more information on mis-sold investments claims, visit our mis-sold investments claims page where you can start your claim in as little as 30 seconds.