What were The Resort Group investments and why did they go wrong?
Founded in 2007, The Resort Group was an overseas property development firm based in Gibraltar, and it owned four sizable luxury resorts (Tortuga, Dunas Beach, White Sands and Llana). In 2016, the company came under the spotlight when the BBC conducted a Panorama investigation that exposed their pension mis-selling. Because of The Resort Group, financial trouble landed at the feet of numerous investors who unwittingly parted with huge portions of their retirement money, in order to ‘take advantage of the fabulous opportunities’ created by the scheme.
What were The Resort Group’s investment opportunities?
The purpose of The Resort Group’s investments was to build resorts, including hotels in the Cape Verde area. As a result of the advice given, many people were convinced to invest their pension funds into this particular scheme. What’s more, because of The Resort Group, Cape Verde complaints rose and the island country was targeted by numerous financial institutions looking to root out similarly high-risk schemes. Hundreds of investors were coerced into transferring their safe and secure pensions into SIPPs to invest in The Resort Group Tortuga Beach, as well as The Resort Group Dunas Beach – both resorts promised healthy returns with a modest (but significant) initial investment.
What happened with The Resort Group scheme?
One of The Resort Group’s problems was that 2007 was a particularly bad time for a venture of its kind. As the financial markets crashed in 2007 (just a year after the company was founded), CEO Rob Jarett and The Resort Group found themselves in desperate times. To pump money into the firm, they set up numerous complex interlinked organisations with the aim of funnelling investments into the four Cape Verde properties. Some of these sham organisations included Lifetime Connections (a call centre) and First Review Pension Services (a financial services firm that used cold call tactics to entice investors).
However, little did investors know, they were subjecting themselves to high-risk investments that were not regulated by the Financial Conduct Authority (FCA). Investors were not told about the risks involved in investing in The Resort Group’s property and like numerous mis-selling cases, investors had no idea what they were getting themselves into.
What should I do if I transferred my pension into a Resort Group investment?
If you have invested in The Resort Group’s overseas property investments, get in touch with our dedicated team at Expert Pension Claims today. Mis-sold pension claims are what we deal with and our claims form to the right of this page takes as little as 30 seconds to fill out.
When you decide to make your claim with us, we will contact your SIPP provider on your behalf. We will put forward your case, explaining clearly how you have been mis-sold.
Where your SIPP provider does not uphold your complaint, we can then take your case to the Financial Ombudsman. Making your Resort Group SIPP claim through our specialist claims management team couldn’t be easier.
If you believe you have been mis-sold a SIPP from The Resort Group, contact Expert Pension Claims to find out more about how we can help you. In the meantime, be sure to browse our guides for the latest news in the industry, including what counts as financial mis-selling.