The Serious Fraud Office is investigating an allegation of fraud against a number of investment funds operated by the troubled Stirling Mortimer Global Property Fund, a protected cell company with limited liability based in Guernsey.
In an announcement today (3 July), the SFO said the investigation is primarily focused on three SMGPF unregulated funds which operated between 2007 and 2011, including Stirling Mortimer No.4 Fund Cape Verde, Stirling Mortimer No.6 Fund Morocco and Stirling Mortimer No.7 Fund Cape Verde II.
The SFO said Stirling Mortimer is assisting with its enquiries. It also called for information in relation to these funds, particularly from financial advisers, property developers and intermediaries.
In 2012, Stirling Mortimer Global Property Fund reached an out of court settlement with ELS International Lawyers and former ELS partner Joe Ezaz over €9.8m (£8.3m) that apparently went missing from the fund.
The fund’s legal High Court action was set to start in April 2012, but in a statement on the Channel Islands Stock Exchange, Stirling said that a settlement has been agreed, although it had not recovered the money missing from two of its sub-funds, No 4 Cape Verde and No 5 Spain.
The firm said that “other options” continue to be pursued to recover the balance and that it will continue to update investors.
The precise terms of the settlement remain private and confidential to the parties under law, according to the statement, which added that the settlement agreement was reached without any admission of liability or wrongdoing.
The High Court had already found in Stirling Mortimer’s favour in late 2010 when it ordered ELS International to pay back €9.8m that went missing from the fund. Ezaz had been accused of misappropriating the money and ELS had said it would pursue him over the assets.
