Connaught Income Funds – Suspected Major Fraud
The founder members of the Connaught Action Group suspect either gross negligence or more likely widespread fraud and criminality in respect of the Connaught Income Fund Series 1 which according to the Limited Partnership Agreement is formerly called “The Guaranteed Low Risk Income Fund, Series 1”. There may well be similar problems with other Connaught funds which are linked to Tiuta plc (as explained below).
There has been much speculation that the Fund is part of a wider “ponzi scheme” involving the Tiuta plc and its subsidiaries. It appears that ways have been found to divert assets from the control of the Fund and in particular, the Fund has made unsecured loans to Tiuta plc and its subsidiaries contrary to the Investment Memorandum. Investors are concerned that monies invested by new investors were used to pay “interest” to existing investors and to repay outgoing investors. A proper investigation of these allegations is required by independent fraud specialists. In our view, investors should be free to appoint an independent insolvency practitioner to wind up the Fund.
Click here for a draft letter for IFAs and investors to send to the CEO of the Financial Services Authority (FSA).
Click here if you are willing to contribute £100 to the Connaught Action Group.
*please note that this is the version of the investment memorandum referred to extensively in the first newsletter and in the background notes to this website.