I invested £40,000 in shares… now I’m fearful I’ve misplaced all the pieces

Ms E.H. writes: I purchased choice shares from Orange River Wealth, which promised to ship me a tough copy of my share certificates however failed to take action. There was no response to an e mail I despatched to the corporate. I paid slightly below £40,000 for shares costing 32p every. They additionally promised a primary dividend could be paid in January 2024.

When Orange River Wealth was elevating thousands and thousands of kilos in 2022, and tempting buyers with a startling 15 per cent annual yield, I did take an in depth take a look at it and located extra pink flags than you’d see waving at an quaint May Day parade in Moscow.

So, 18 months in the past, The Mail on Sunday warned that the supply doc issued to buyers was riddled with dodgy particulars. It claimed hyperlinks to a agency of City stockbrokers that had already gone bust. It named a director who had give up months earlier. And the person behind the providing – Lee Farbrace – offered a listing of his directorships which conveniently not noted one among his corporations that had promised ‘unparalleled low risk returns’ however inside months had price an investor £100,000.

Orange River Capital says it has purchased a 49 per cent stake in Greengrow Capital, a medicinal hashish plantation in South Africa

The shares on supply weren’t even in Orange River Wealth itself. They had been in a sister firm known as Orange River Capital. And whereas the 15 per cent mounted dividend was very engaging – assuming you bought it – management of the corporate stayed with a distinct class of shares the place the last word boss is, you’ve guessed it, Lee Farbrace.

Where has all the cash gone? Well, Orange River Capital says it has purchased a 49 per cent stake in Greengrow Capital, a medicinal hashish plantation in South Africa. No audited figures have been offered, and based on Companies House, each Orange River Capital and Orange River Wealth have didn’t file accounts that had been legally due in May final yr. This is an offence.

Your personal very dangerous funding ought to by no means have occurred. On paper, the shares you purchased had been solely meant for rich buyers or these refined sufficient to know what they had been doing and to afford the dangers. You informed the share salesman from Orange River Wealth that you simply knew what you had been doing, however the fact was that you simply didn’t.

You had been informed to supply a signed certificates, giving particulars of the skilled adviser who had mentioned the funding with you, however there was no such dialogue and also you offered no such certificates. Orange River Capital ought to by no means have issued your shares. It is so simple as that. It ought to unravel the entire deal and return your £40,000. I requested Lee Farbrace to do that. He didn’t reply. I additionally requested him to elucidate why you had been informed to pay £19,200 of your £40,000 to a separate firm known as Phoenix Capital Investments. This firm was arrange in 2017, with no single individual or agency controlling it. Almost three years later, based on Companies House, Lee Farbrace knowledgeable officers he was the controller all alongside. Again, Farbrace supplied no rationalization.

There was a response of a form although. After I began asking questions, you obtained the right share certificates you needed, and Adam Collins, who describes himself as Sales Director of Orange River Wealth, despatched you a one-page report. This lacked any monetary particulars, nevertheless it did reveal that the corporate has skilled advisers within the form of FCA-authorised NextCrowd. Except that that is simply one other false declare.

Sacha Bright, who runs NextCrowd, informed me it operates a crowdfunding platform however added: ‘We do not act as advisers to any firms.’ Orange River Wealth did need to hyperlink up with NextCrowd however didn’t reply questions on its enterprise.

I did ask Adam Collins about this false declare, however he supplied no rationalization. I additionally requested him what expertise and {qualifications} he holds as an funding salesman, since his final job was as a automobile salesman. Again, he supplied no remark. All this leaves you with shares you must by no means have been allowed to purchase, and with out the dividend you had been informed to count on. You might sue Orange River Wealth, or Orange River Capital, or each. But you may be throwing good cash after dangerous. When I checked courtroom information, I discovered each corporations had unhappy County Court Judgments towards them. Perhaps it’s time for an Insolvency Service investigation.

We’re watching you 

A one-time millionaire Liverpool property developer has been declared bankrupt after the collapse of an residence scheme which the MoS warned towards in 2022. Lawrence Kenwright was behind plans to transform Kingsway House from places of work to residential residences.

Lawrence Kenwright, pictured along with his spouse Katie, who was declared bankrupt after his plans to transform Kingsway House in Liverpool collapsed

Financiers Lyell Trading, who put up the cash, say they’re owed £25,000,337 with the mortgage being assured by Kenwright personally

Two years in the past, I investigated the scheme after a reader who had put down a deposit of £26,000 confronted calls for from Kenwright’s legal professionals for the stability of £184,000. They informed her that her new residence was ‘ready for occupation’. But after I went to Kingsway House it was clear that main work on the constructing was persevering with. Liverpool City Council produced proof of great breaches of planning permission. And Merseyside Fire Service revealed the constructing didn’t meet security laws. Now financiers Lyell Trading, who put up the cash, say they’re owed £25,000,337. The mortgage was assured by Kenwright personally. The High Court in Liverpool was informed he had didn’t pay, and that he and his spouse Katie, who was additionally declared bankrupt, owe an additional £4,366,314 that was borrowed to pay for a separate venture. Any sale of Kingsway House is unlikely to cowl money owed to Lyell, leaving no cash to permit deposits to be repaid. 

We’re watching you

A one-time millionaire Liverpool property developer has been declared bankrupt after the collapse of an residence scheme which the MoS warned towards in 2022. Lawrence Kenwright was behind plans to transform Kingsway House from places of work to residential residences.

Two years in the past, I investigated the scheme after a reader who had put down a deposit of £26,000 confronted calls for from Kenwright’s legal professionals for the stability of £184,000. They informed her that her new residence was ‘ready for occupation’. But after I went to Kingsway House it was clear that main work on the constructing was persevering with. Liverpool City Council produced proof of great breaches of planning permission. And Merseyside Fire Service revealed the constructing didn’t meet security laws. Now financiers Lyell Trading, who put up the cash, say they’re owed £25,000,337. The mortgage was assured by Kenwright personally. The High Court in Liverpool was informed he had didn’t pay, and that he and his spouse Katie, who was additionally declared bankrupt, owe an additional £4,366,314 that was borrowed to pay for a separate venture. Any sale of Kingsway House is unlikely to cowl money owed to Lyell, leaving no cash to permit deposits to be repaid.