In these cases the regulator said it usually refers the matter to a law enforcement agency with powers to investigate fraud.
In June 2020 Blackmore Bond administrators Duff & Phelps warned investors might only recover a maximum of £5m from the 11 property development projects into which their £46m was piled.
But after a series of setbacks, in December the administrators then said the estimated funds available from the property portfolio were unlikely to exceed £1m.
The bonds were advertised with returns of between 6.5 and 10 per cent and some were marketed as an alternative to an Innovative Finance Isa, where interest paid to bondholders is tax free, according to the administrators.
Blackmore Bond used the same online marketing company that represented scandal-embroiled LCF, to source new investor funds.
According to administrators the company was paid a fee of 20 per cent and invoiced directly once bondholders had advanced funds for the mini bonds.
London Capital & Finance fell into administration in January 2019 after raising in excess of £237m from more than 11,500 investors over the course of two years.
Blackmore Bond directors previously blamed the collapse of London Capital & Finance, and the surrounding press coverage, for making it increasingly difficult to attract new investment to their own scheme.
What do you think about the issues raised by this story? Email us on FTAletters@ft.com to let us know