EXCLUSIVE by EWAN LAMB
Financial advisers who steered unsuspecting investors into the worthless New Earth Recycling & Renewables [Infrastructure] fund (NERR) are potential targets for a No Win No Fee claims company offering to help people recover their lost cash..
Thousands of individuals have lost millions of pounds following the collapse of NERR, that Isle of Man fund which was supposed to finance a £21 million waste treatment facility for the Scottish Borders.
NERR also had a controlling interest in New Earth Solutions Group (NESG), the now bankrupt contractors handed a £80 million waste management contract by Borders councillors in 2011. The deal between Scottish Borders Council and NESG suffered a spectacular collapse in 2015 when it became clear the debt-ridden firm could not deliver the waste treatment project.
Now the Manx-based investment fund and its controllers Premier Group (Isle of Man) Ltd., also in liquidation, are the subject of investigations by financial regulators and insolvency experts.
Get Claims Advice Ltd. [GCA], the Manchester outfit offering to help out disgruntled NERR shareholders, appears to be following in the footsteps of firms which pursued claims on behalf of accident victims or those who were wrongly charged thousands of pounds by banks for PPI cover.
Although the initial assessment of a potential claim against financial advisers is free, clients who are successful will have to pay a 'Success Fee' amounting to 20 per cent + VAT of any settlement achieved on their behalf.
As Not Just Sheep & Rugby has reported previously, a significant number of NERR's former customers have won sizeable claims against advisers after lodging complaints (free of charge) with the Financial Services Ombudsman. Successful cases are well documented on the Ombudsman's website.
GCA's blurb promoting their NERR service claims creditors are owed £9 million, including SIPP investors "who thought the New Earth fund was a good bet to help them on their way to retirement".
'Should you have been advised to invest in New Earth Solutions in the first place?' asks the advertisement.. "The simple truth of the matter is New Earth as a recycling investment was always high risk: a non-standard asset not regulated by the Financial Conduct Authority in the UK meaning the risk for UK investors could have been unsuitable'.
Scottish Borders Council please note!
GCA add: "Now the firm that was in charge of New Earth Solutions - Premier Group - is in liquidation too. If it looks as though you have a claim against your IFA we can pursue it for you on a No Win No fee basis, leaving you with nothing to lose".
Many of those who lost money as a result of the collapse of NERR may be tempted to enlist GCA's services. Unfortunately it seems the 20% commission (plus VAT) involved is even larger than the management and promotion fees collected by Premier Group's directors for running the worthless investment entity.