The Serious Fraud Office has asked Harlequin Investors to complete a further questionnaire as part of the final stages in a criminal investigation.
In March, 2013, the SFO announced it was investigating complaints over the Harlequin property group together with Essex Police.
At the time the SFO called for investors in Harlequin to come forward, especially those who have transferred their pension to make investments into overseas property developments operated by Harlequin.
The online questionnaire, which includes questions about finance and the investment itself, will be available to complete until midnight on 28 August 2015.
The SFO is interested in hearing from any Harlequin investor, whether a current investor or a previous investor who re-sold or cancelled their Harlequin investment.
In a statement, the SFO said: “We anticipate the questionnaire will take 30 minutes to an hour to complete.
“The questionnaire will be used to assist the criminal inquiry, and may form the basis of the evidence given at any subsequent criminal trial.
“Only questionnaires with verifiable contact details will be considered, so please leave up to date contact information. After consideration of your response, you may be contacted by a member of this office to discuss how you may further assist the investigation.”
Meanwhile, the SFO said it cannot comment on the on-going investigation at this point in time and investors who are concerned about their investment should seek independent legal and financial advice.
A spokesperson for Harlequin told FTAdviser: “The SFO investigation has been active for over two years but Harlequin notes that since the start of that period no action has been taken against any of its companies, directors or members of staff.
“Harlequin is fully confident in its position that there is no basis for charges and in the meantime is happy to cooperate with the authorities.
“Harlequin continues to restructure and we look forward to our US$70+m professional negligence claim against Wilkins Kennedy, our former accountants, being heard in the London High Court in 2016.
“Our goal remains to assist more investors to complete on their overseas property investments.”
The launch of the SFO investigation came hot on the heels of an Financial Services Authority warning in January over Harlequin self-invested personal pension investments, warning advisers against recommending clients put large sums into products weighted heavily towards the company’s overseas property.
Specific resorts of particular interest to the SFO include:
• Buccament Bay in St Vincent & the Grenadines;
• Merricks in Barbados;
• Marquis Estate in St Lucia;
• The Hideaway, Las Canas;
• Two Rivers in the Dominican Republic; and
• Garapua Beach Resort in Brazil.
Prior to this, in March 2013, a Sipp provider sent letters to all of its clients with investments in Harlequin properties at the behest of the regulator, informing them that the value of the investments has been written down to just a nominal £1.
The letter from The Lifetime Sipp Company said that until the investments are realised or a professional valuation is available, the value of their Harlequin property investment will be shown in future valuations as £1 “following discussions with our regulator”.
The Lifetime Sipp Company previously said it will be adopting this approach “as an accurate valuation is not currently available”.
donia.o’loughlin@ft.com
