Agent investigated by serious fraud office

A former overseas property agency group is under investigation by the Serious Fraud Office for its role in the sale of “bio fuel” investment products.

Global edge understands that the agency has had its bank account frozen following the conclusion of an investigation into the activities of its product partners Sustainable Agroenergy Plc and Sustainable Wealth Investments UK Ltd.

The product under investigation is a Green Oil project in Cambodia and Thailand using Jatropha trees. The product was being sold through self invested personal pension schemes and an area of concern is thought to be the offer of “cash-back” to pension investors which is against Financial Service Authority (FSA) Rules.

 The agency in question was one of the largest sales agents for Caribbean property during the boom years and their diversification into “alternatives” is a part of a wider industry trend.

The attraction of alternatives is easy to see. Green investment is a compelling sales hook, the margins are high and commissions are paid quickly. Unfortunately for many, due diligence is an after thought. Sales-hungry agents and a loose regulatory environment has created a glut of green investment products – many of which can at best be described as opaque when it comes to risk assessment.

The result is a trust vacuum and a real possibility of regulatory clamp down. Products like the SIPP investment platform are key for building both industry and consumer trust in a product category that offers fantastic rewards if you can successfully navigate the sharks.

Source: Global Edge