Connaught Income Funds – Suspected Major Fraud

By Bridging Loan Directory -

 

The founder members of the Connaught Action Group suspect either gross negligence or more likely widespread fraud and criminality in respect of the Connaught Income Fund Series 1 which according to the Limited Partnership Agreement is properly formerly called “The Guaranteed Low Risk Income Fund, Series 1”.  There may well be similar problems with other Connaught funds which are linked to Tiuta plc.

A proper investigation of these allegations is required by independent fraud specialists. In the Connaught Action Group’s view, investors should be free to appoint an independent insolvency practitioner to wind up the Fund.

The Connaught Action Group has also formulated a letter for IFA’s and investors to send to the CEO of the FSA, which is reproduced below:

” Dear Sir,

Connaught Income Fund, Series 1 (“the Fund”)

I am an investor in the Fund/ I am an intermediary whose clients have invested in the Fund.

It has brought to my attention that there have been gross misrepresentations in the investment memorandum concerning the Fund and in addition gross mismanagement of the Fund. Please follow a link to the website of the Connaught Action Group: http://connaughtactiongroup.com/ .

The misleading investment memorandum was approved by Blue Gate Capital Limited which is FSA regulated. Please commence an investigation of Blue Gate Capital’s approval of a misleading investment memorandum.

The party engaged by the Fund to lend bridging loan monies to third parties was Tiuta plc, also regulated by the FSA.

It is now alleged that George Pattellis, the CEO of Tiuta plc resigned in February 2011 and reported widespread wrongdoing to the FSA. It is also widely believed that the FSA dismissed his claims as those of a disgruntled employee. Please can you investigate this matter.

Please can you investigate the claims that there has been theft and fraud at Tiuta plc, an FSA regulated firm.

Please can you also look at Connaught and the role of Mike Davies (the former compliance officer of Tiuta plc) and of Nigel Walter (the alleged ‘Mr Big’ behind Connaught and expert in ‘land banking’). I believe that Connaught failed to ensure that the Fund obtained security by way of first fixed charges over land to secure lending made by the Fund.

 There is widespread speculation that tens of millions of pounds have been lost (30 to 40 million according to an estimate from Duff & Phelps) and that the Connaught and Tiuta have been running a ‘ponzi scheme’. Please investigate this matter.

Yours sincerely”

Connaught invited investors to attend a meeting yesterday, 13 August, to discuss a financial review of the fund and the possibility of recoveries.

You can visit the Connaught Action Group website by clicking here.