The recent news about Ethical Forestry Ltd’s liquidation has left many investors seeking answers. If you’re among those affected by this unforeseen outcome, it’s crucial to act promptly to explore your options for recovery. Pension Justice is on hand to assist you in evaluating your case and potentially claiming back what you are owed. Don’t let uncertainty leave you feeling helpless.
Contact Pension Justice today on 0800 014 8275 to get the support and guidance you need during this challenging time.
The Appeal of Ethical Forestry Investments
Ethical Forestry Ltd operated tree plantations in Costa Rica; their focus was on sustainability and ethically-minded financial products. They pitched pension schemes that promised fiscal dividends and environmental and social contributions.
The appeal of investing in tree plantations drew in numerous backers who supported the principles of sustainable forestry. They saw it as a way to bolster personal financial security through responsible investment avenues.
However, recent scrutiny has cast doubt on the integrity of Ethical Forestry Ltd’s operations. Investigations uncovered disconcerting methods that have called into question the legitimacy of the company’s professed values.
The company’s business model rested on the growth cycle of Melina Hardwood, which spanned 12 years from planting to harvest. This investment opportunity was sold to patrons under the guise of a stable and eco-friendly venture, offering an attractive yield with the potential of a return of up to £104,000 upon the scheme’s maturity.
However, the security of the investment came into question as the company found itself in the throes of liquidation while also under the microscope of the Serious Fraud Office (SFO).
The ambiguity surrounding the true worth of their stakes intensified as the plantations sustained significant damage from Hurricane Otto in 2016, throwing investors into deeper uncertainty and exacerbating the challenges at hand.
The Impact on Investors
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The unraveling of Ethical Forestry Limited rocked the financial security of over 3,000 UK investors. Their collective investment, worth over £50 million, was in jeopardy, and the company had descended into liquidation.
This was a stark divergence from the fruitful returns they were promised. The resulting financial plight of these investors highlights the potentially precarious nature of niche investment markets. This is especially true when transparency and due diligence falter.
Fraud Charges by Serious Fraud Office for Costa Rican Forestry Investment Scheme
Three former company directors have been charged with fraud in connection with a collapsed investment scheme. The scheme allegedly lost investors millions of pounds.
The Bournemouth-based company managed tree plantations in Costa Rica for more than eight years. They also marketed investment opportunities starting at £12,000. Investors were promised profitable returns when the hardwood saplings planted on their sites matured, were harvested, and sold. However, these projections have been alleged to be part of a scheme to commit fraud, providing false assurance of investment security and environmental stewardship.
However, the company’s collapse in 2015 set off a thorough investigation led by the SFO. During the investigation, hundreds of investors testified that their savings vanished. It was revealed that many had used self-invested personal pensions.
The trio of directors each face two counts of conspiracy to defraud by false representation. They also each face one count of fraudulent trading. Their initial court appearance at Westminster Magistrates’ Court is scheduled for June 28. After that, the proceedings will advance to the Crown Court for trial (1).
Can I Recover My Ethical Forestry Mis-Sold Pension Investment?
Pension Justice is currently proceeding on many cases for our clients who have lost a significant amount of money through the Ethical Forestry scheme.
The Financial Services Compensation Scheme (FSCS) has said it will pay out over £50 million in compensation to those who have invested in the Costa-Rican scheme Ethical Forestry.
Mr. P.H.’s Story: Reclaiming Lost Pensions Invested in Forestry
Courtesy: Freepik
We recently helped one of our clients claim compensation for a mis-sold pension. They were also invested in another forestry scheme.
Residing in Leicestershire, Mr. P.H. had accumulated six private pensions over his career. Unknown to him, he received misguided advice from Anton Barr Brokers, an entity not sanctioned by the Financial Conduct Authority, to consolidate his pensions into a Self-Invested Personal Pension (SIPP) with Guinness Mahon. Following this advice, he was led to invest in a German forestry venture, Paulownia.
Unfortunately, both Anton Barr Brokers and Guinness Mahon entered administration, and the Paulownia forestry investments turned sour, leaving him with substantial pension losses.
Determined to seek justice for our client, we initiated a claim against Guinness Mahon for their lack of due diligence regarding the SIPP. Our efforts resulted in a significant victory for Mr. P.H., with an interim compensation payment of £10,629.46, followed by an additional compensation of £43,013.30. This total compensation helped to restore the financial damages our client suffered.
Start your claim today and take the first step toward financial recovery.
