By Cliff Weight, Director, ShareSoc
I encourage members to join the Wellesley Investors Action Group. You can do so here https://www.facebook.com/groups/wellesleyp2pcreditorsactiongroup
Neil Taylor has brought this to my attention. ShareSoc is very willing to blog and tweet about this and encourage all those who have lost money in Wellesley to consider joining the Wellesley Investors Action Group. They have 300 members already which is a good start. But there were 11,700 investors affected, so ideally all should join the Action Group. The 336 members have suffered collectively a loss of around £3 million, but, to be able to get the lawyers and litigation funders excited and motivated, a claim of £10 to £20 million is needed, typically.
The Wellesley Investors Action Group state that matters of real concern to them are to be investigated by government agencies.
The scandalous details were written up and exposed in a Daily Mail article last September:
and an earlier article in 2017
Readers may have heard of LCF, which was bigger and more high profile than Wellesley, but covers much the same issues.
On 12 Dec 2020, the FCA confirmed proposals to permanently ban the mass-marketing of speculative illiquid securities – including speculative mini-bonds – to retail investors. A temporary ban was introduced without consultation in January following serious concerns that speculative mini-bonds were being promoted to retail investors who neither understood the risks involved, nor could afford the potential financial losses. The new rules will apply from 1 January 2021 and include a small number of changes to the temporary ban, following a consultation launched in June. See https://www.fca.org.uk/news/press-releases/fca-confirms-speculative-mini-bond-mass-marketing-ban
The ban on the mass marketing of illiquid securities comes after a series of scandals involving unregulated bonds, including the collapse of London Capital & Finance (LCF) last year.
Former Court of Appeal judge Elizabeth Gloster, in her report on mini-bonds, blasted FCA foot-dragging and described the regulator’s conduct as ‘unacceptable’.
The FCA appears to have been asleep at the wheel as we noted in the ShareSoc/UKSA joint response to HM Treasury consultation ‘Regulatory Framework for Approval of Financial Promotions’ see https://www.sharesoc.org/consultation/sharesocuksa-make-joint-response-to-hm-treasury-consultation-regulatory-framework-for-approval-of-financial-promotions/
Neil Taylor
Neil Taylor has briefed me on Wellesley. Neil is a ShareSoc member, who joined over a year ago – he joined he tells me because “I appreciate the empathy that ShareSoc shown towards Sirius Minerals investors at the time. It was gallant and I shared the same view.”
Neil is also a member of the Leigh Day Claimants Committee which has just been announced and I congratulate him on this very important appointment and I wish him well. Readers will be aware that ShareSoc launched its Woodford campaign in November 2020 and have endorsed the Leigh Day Claim.
if there are any members of ShareSoc who have be caught out by the Wellesley CVA, either mini bond, p2p or property bond holders that are not happy, please join our Wellesley Investors Action Group per Cliff Weight Blog above. We are taking action and have put a strong case forward to the Insolvency Services and FCA who are now to investigate matters.
Government agencies seem to employ people who are either incompetent or lazy, making easy money and a comfortable lifestyle. If they failed to do their job then the Government of the day must take the blame and recompense those who are affected by these financial crooks.
Hi I was caught out by this Company both P2P and mini bonds I stand to lose 35K and they are still in business ??
Hugh, Please join WIAG we working on matters behind the scenes. Cliff Weight has posted the link above, we would be happy for you work with us.
Can`t join FB Neil, Is there any other contact options for WIAG ??… I`ve been caught out too.
Lost 15000 to these pirates and now reduced to using food bank which my wife doesn’t I la about as I am to embarrassed to tell her thank you Wellesley for destroying my retirement
Please join me to the WIAG and let me know how I can help.
Hi Maggie,
To join the WIAG, you will need to join this Facebook group: https://www.facebook.com/groups/wellesleyp2pcreditorsactiongroup. You can ask how you can help in Facebook.
Please note whilst ShareSoc supports the group, we do not operate it. It is run independently.
Best,
Mark
When will the december pay outs actually happen
Hi, is there any update on the December payouts?
How can I join Wellesley Action Group ? I am 82yo not on facebook . First of 2 CVA payments £1,040 each due December 2023 NOT received . ~Grateful for guidance .
In response to the queries about the December payouts, I have been in touch with Neil Taylor who has kindly provided a comprehensive update. We will publish his update on our website in due course – and I will post a link here. Unfortunately, the only way to join the group and remain fully informed/up-to-date is to join Neil’s Facebook group.
Thank you Mark , I am grateful for your reply and I will join Facebook in order to join the Wellesley Investors Action Group. Best wishes, Roger
Good morning all, I am the Chair of Wellesley Investors Action Group (WIAG), we have 695 members today including other halves.
All investors must know now that Wellesley Finance Ltd (WFL) has not redeemed 50% of shares issued to investors that held mini bonds and Property mini bonds through this company. We estimated that there are 4,250 investors of the total 11,744 investors (36%), who are owed £10,089,328 from WFL, that have today been zilch; nothing; £0.00 of their investment capital return since the CVA was approved on 13 October 2020.
As a reminder to all, these shares were to be redeemed in two equal tranches, one in December 2023 and December 2024, on reaching its profit thresholds as defined in the CVA. These profit thresholds basically said that investors will be paid back out of profits more than £5m. We note the accounts to 31 December 2022, filed show that Wellesley has done little, (almost nothing) by way of new business to this point, and the losses are showing £1.46m at this time. They appear not to have used institutional investors brought in, or started any new developments since the CVA as far as we can see as pledged in the CVA.
We have a full and comprehensive complaint on-going with the FCA about Wellesley covering a plethora of dubious matters and we understand enforcement actions and investigations are still on-going here. We are waiting to hear from the FCA, but as normal they have deferred our complaint on a rolling six monthly basis until they complete their actions. This is painfully slow, but we are persisting with the FCA, as we also feel they have taking actions which have allowed Wellesley to continue in business whilst it was technically insolvent.
We have now written to the director in charge, also Graham Wellesley the largest shareholder and significant owner of the Wellesley Group and have requested a full disclosure of the 2023 year. They have replied to us saying they will update shareholders in January 2024. If you want to join our Facebook Group if you are a holder of shares in WFL, please use the LINK BELOW.
https://www.facebook.com/groups/wellesleyp2pcreditorsactiongroup
Thanks Neil
I have now published your full commentary/explanation, with your letters to Wellesley and the FCA, here: https://www.sharesoc.org/blog/collective-investments/january-2024-update-from-the-wellesley-investors-action-group/
Best
Mark