Isle of Man investors fear loss of life-savings as company collapses
The group is now subject to a £200m fraud investigation. Two Isle of Man-registered companies linked to a collapsed asset management firm that is currently subject to a major fraud inquiry have applied to be wound up. City of London Police announced in February this year that it was investigating the family-run Seventy Ninth Group in connection with allegations of suspected widespread fraud. The Southport-based group was placed in administration in April. Around 3,700 investors, including dozens who banked in the Isle of Man, could potentially face significant financial losses following the company’s collapse — and for many it could mean the loss of their life savings.
Now two Isle of Man subsidiaries, Seventy Ninth Air (IoM) Ltd and Seventy Ninth Air Two Ltd, have presented a petition for the winding up of the companies. Gordon Wilson of FRP Advisory (Isle of Man) and Jeremy Woodside of administrators Quantuma were appointed provisional liquidators by court order on October 29. They have the powers to maintain and manage a 2008 Learjet 45XR and 2005 Cirrus SR22 GTS-G2 aircraft owned by the companies. The winding up petition will be heard in the high court on December 4.
In an update to investors, the joint administrators say their findings to date indicate the 79th Group investment scheme was ‘likely operated as a Ponzi scheme’.
Worldwide freezing orders and injunctions against the directors and their connected parties were granted by the High Court in London on October 29. In their update, the joint administrators said the group, run by David Webster and his sons Jake and Curtis Webster with Natalie Bellis as CEO, operated ‘a vast network of companies extending to over 100 companies in over 10 jurisdictions’. They said: ‘To date over 130 different bank accounts have been identified with large sums of investor monies being transferred between accounts. Our investigations are ongoing but it's unclear at this stage what purpose and functions these companies and accounts served…. ‘Current investigations have not identified any assets acquired by the 79th Group loan note companies into which investors invested their funds (in excess of £150m appears to have been invested).’
No assets identified to date can deliver the advertised returns to investors as marketed, they said, adding: ‘Our findings to date indicate the 79th Group investment scheme was likely operated as a Ponzi scheme.’… ‘One of the English companies has been placed into administration, and the administrators have made claims against the companies under the loan documentation.
‘Whilst there is a dispute of fact over the level of indebtedness and the manner in which such indebtedness should be pursued, it is nonetheless likely that the companies will owe something to that entity, and it is unlikely the companies will have funds available to discharge this indebtedness.’
Авторское резюме: Two Isle of Man subsidiaries seek winding up amid a £200m fraud probe into the Seventy Ninth Group, with administrators revealing possible Ponzi-like operation and hundreds to thousands of investors facing losses.