RegulationMar 13 2023

FCA warns Blackmore Bond victims over redress scam

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FCA warns Blackmore Bond victims over redress scam
Pexels/Tara Winstead
BySally Hickey

The Financial Conduct Authority has warned Blackmore Bond investors about fraudsters falsely claiming to be from a fund administration company and promising to return their money.

In a statement on Friday (March 10), the FCA said it was aware of at least one investor in Blackmore having received a letter falsely claiming to be from Oak Fund Services.

The letter states that the company has been successful in generating CGS Claims funding, and asking consumers to contact them urgently.

The FCA said: “Oak have confirmed that they did not write this letter and the contents are false and misleading. 

“We are concerned that the letter is a scam.”

The regulator urged consumers who received the letter not to call the telephone number or email address given and instead contact Oak directly.

Blackmore Bond was set up in 2016, and until 2018 ran an investment scheme where potential clients were offered mini-bonds with an attractive level of interest.

As these products, as well as Blackmore itself, were unregulated and neither had to adhere to the FCA’s rules and regulations. 

The company raised millions of pounds from investors to fund property developments, but fell into administration in April 2020 after several months of rocky waters in which it failed to pay interest due to bondholders.

Some 2,000 investors were deprived of £46mn, much of which was never recovered.