Thread by @ianbeckett

1/ @retheauditor @premnsikka @alexralph The curious case of “Taxing Times” in the mysterious world of corporate insolvency - we left off at AND . #LCF Simon Hume-Kendall has recently appointed 2 new recruits from the mysterious ..

2/ world of corporate insolvency - I.P.’s Mr Andrew Fender/Ms Sandra Fender, from Sanderlings LLP/Sanderlings Accountancy Services Ltd in Solihull(West Midlands) as administrators to London Power & Technology Ltd “LPT”/LPE Enterprises Ltd “LPE”, allegedly two of the SPV’s ..

3/ playing musical chairs in the #LCF crew’s “Mazars step plan” execution . Sanderlings LLP’s last filed accounts show Net Liabilities of £156,946 + Sanderlings Accountancy Services Ltd show Net Assets of £264 so we’re clearly not talking KPMG/PWC here ..

4/ although Mr Fender is allegedly a member of the now infamous Twofold First Services LLP tax avoidance scheme dailymail.co.uk/news/article-2… AND taxam.uk/in-respect-of-…. Solihull is no financial or natural resource advisory powerhouse so quickly scanning through Mr Fenders case ..

5/ history over the last few years unsurprisingly IFA/UCIS/E&P cases were rare pickings until 08/2019 when the @TheFCA’s SIPPshittery came a calling with notorious FCA IFA Blackstar Wealth Management Ltd “Blackstar WM”, FCA IFA Anthony Feeney Financial Services LLP …

6/ “AFeeneyFS” a few days later, FCA IFA Economic Financial Solutions IFA Ltd (aka Torch Wealth Management) “Torch WM” in 11/2019 + the rather notorious FCA IFA Asset Independent Financial Advisors Ltd “Asset IFA” a week later. All four FCA IFA’s despite being from as far ..

7/ afield as Hull & Wales shared at least two things in common: 1. they had rafts of miss-selling claims coming down the pike. 2. they used “unauthorised introducer” boiler room ops. So far Mr Fender has only filed reports on Blackstar WM. Solihull was though a hotspot in ..

8/ @TheFCA’s SIPPshittery. As #LCF bondholders will know (from Lakeview UK Investments Plc Minibonds “Lakeview Minibonds” ) Solihull was home to the “Cherish Chums” with e.g. FCA IFA Cherish Wealth Management Ltd “Cherish WM” bit.ly/2P6xSeH …

9/ who along with networks of unauthorised introducers (e.g. Avacade Ltd/Alexandra Associates(UK) Ltd - “Avacade”), Promoters, SIPP providers, Payment Institutions etc its alleged it resulted in “financial miss-selling on an industrial scale”. Cherish WM wasn’t just a …

10/ notorious A.R. of the notorious FCA IFA Shah Wealth Management Ltd “Shah WM” but it also shared the same trading address in Solihull, honcho etc. When Cherish WM/Shah WM were shut down up popped Cherish Premier Wealth Ltd “Cherish PW”, it’s reported in the same location + ..

11/ with directors in common acting as unauthorised introducers to a variety of FCA IFA’s. In an ITV expose of Cherish PW dailymail.co.uk/news/article-4… AND if #LCF bondholder victims listen closely they will hear mention of Lakeview Minibonds. Solihull wasn’t..

12/ the only hotspot in @TheFCA’s SIPPshittery in the West Midlands however, a few miles away in Sutton Coalfield there was the notorious FCA IFA BlackStar Wealth Management Ltd “Blackstar WM” which shared the same web of unauthorised introducers as Cherish WM/Shah WM. When ..

13/ Cherish WM/Shah WM was shutdown it’s notorious unauthorised introducer Avacade seamlessly teamed up with Blackstar WM, when Liberty SIPP was called out for SIPPshitting + dropped Avacade with allegedly 500+ SIPP applications in progress, Avacade simply “got another” SIPP ..

14/ provider. Blackstar WM allegedly peddled notorious Colonial Capital Minibonds , Store First , Harlequin Property , Beaufort Securities DFM , Dolphin Capital bbc.co.uk/sounds/play/m0… ..

15/ + many more “schemes”, “schemes” run by both familiar faces from past “curious cases” + a web of interconnected individuals - much more on this soon. Blackstar WM however leads to so much more as a peek at its statutory accounts teases us - “class E shares”, directors loan ..

16/ accounts & large amounts of uncalled unpaid share capital .. likely fingerprints of the notorious “E shares” tax avoidance scheme. A peek at the historic share register yields Messrs Humphreys(D/S), Lowbridge(D/S), Fitzpatrick(S), Dobson(S) & Snowden(S) + points to the ..

17/ wider web of the “Blackstar Group” of on/offshore SPV’s & diverse complimentary ops to its alleged core business of tax avoidance schemes. It’s alleged that: 1. “Blackstar (Europe) Ltd” promoted/sold tax avoidance schemes (eg “E shares” scheme) through not just a …

18/ web of IFA’s but also a web of ICAEW member accountancy firms. 2. sometimes the IFA & accountancy firm would be rewarded with commissions paid out of “generous fees”. 3. the estimated losses suffered could exceed £1billion with allegedly tens of £millions in fees. The …

19/ fascinating High Court case ( files.pumptax.com/wp-content/upl…) a few weeks ago centred around an “E shares” scheme + provides further insight including allegedly: 1. (s.70) a non insolvency “exit strategy” of assigning the E shares at some point to an “Asset Protection Vehicle” …

20/ (SPV) which would be unable to pay the call. 2. (s.77) enormous upfront fees (circa 12.5% of the amounts sheltered in the scheme). The Telegraph further reports an associated web of accountancy firms + alleges “unlawful secret commissions”. Andrew Fender was appointed …

21/ administrator of Blackstar WM” on 13/08/2019. The directors statement of affairs dated 27/9/2019, the administrators proposal dated 4/10/2019 some 4 working days later was light on detail + heavy on closure scribd.com/document/47055…. It stated a fait accompli of the …

22/ sale of the client database/contracts(5.3-5.9) to who Mr Fender described in(5.7) as an “unconnected party” for the higher of £3,000 or 5% of the 1st years turnover of the client database. It’s interesting to note that the client database of Cherish WM was sold for £100,000.

23/ The buyer of Blackstar WM’s client database was Ms Holder, allegedly a BlackStar WM paraplanner who fortuitously signed up via the FCA’s regulatory cat-flap as an A.R. (Fiscal Wealth Planning) of FCA IFA Quilter on 4/7/2019. Mr Fender reports that he sacked all 8 staff …

24/ on the day of his appointment(13/08/2019), that Ms Holder contacted him on 16/08/2019, that a draft contract was prepared beginning next working day + that the transfer was completed on 11/09/2019. Mr Fender gives scant details of the business activities of BlackStar WM …

25/ + few details of the alleged notoriety & activities of the wider “BlackStar Group” + it’s alleged tax avoidance schemes allegedly peddled through IFAs & accountancy firms. Mr Fender reports the director’s vague comments (2.2/2.3) with little explanation of why …

26/ “..as a result of this (2013 HMRC) investigation turnover dropped from £12m p.a. to nil overnight..” + “..substantial business assets were lost..”. Mr Fender then goes on to say (2.4) that the FCA were “involved in on-going supervision of BlackStar WM from 2016 onwards” …

27/ with no explanation of why + reports(5.37) that his “legal advisor” had advised with regards to “..the regulatory requirements of the FCA & ongoing enquiries”. Mr Fender(5.10/5.11) then reports a reason for administration was FOS judgements against it(19 estimated at ~£600k..

28/ plus a further 91 FOS claims in progress). No explanation is stated for such large numbers of miss-selling claims. We then come to the £1.3m “inter-company” loan (written down to zero) to Atlantis Capital Ltd (07277759) “Atlantis” (5.20-5.26). Mr Fender reports …

29/ “no direct relationship” between Blackstar Holdings SA + Blackstar WM & only a “working relationship”(common shareholders only) between Atlantis + Blackstar WM, however it’s interesting to note that : 1. Atlantis’s audited accounts until Y/E 2015 stated Blackstar WM was ..

30/ under the same common control as Atlantis (Atlantis & Blackstar (Europe) Ltd were subsidiaries of Blackstar (Holdings) SA). Atlantis’s auditors resigned prior to Y/E 2015 + in Atlantis’s Y/E 2015 UNaudited accounts it stated that the directors of Atlantis were also …

31/ directors of BlackStar WM & Blackstar (Europe) Ltd. Post Y/E 2015 UNaudited accounts stated that the directors of Atlantis were also shareholders in Blackstar WM. 2. Post Y/E 2014 the Atlantis/Blackstar WM “Intercompany” balance remained static. 3. Post Y/E 2015 the …

32/ massive ~£50m opposite balances on Atlantis’s debtors/creditors disappeared. 4. In 2016 the FCA moved in to “supervise” Blackstar WM. Mr Fender next reported (5.24-5.26) a £1.2m “3rd party” loan (written down to zero) to I.O.M. SPV Patent Capital Ltd “PCL” (if we ASSUME …

33/ Atlantis/PCL loans are CONNECTED) to be part of a “scheme”: 1. of “companies” to “acquire, develop & exploit patent tech to achieve gains in a very short time period”. 2. Atlantis provided wholesale funding to “investors”. 3. the Atlantis “intercompany” loan covered …

34/ wholesale funding costs. 4. The PCL “3rd party” loan was wholesale funding to PCL. 5. Blackstar WM “distributed” such companies. 6. “Investors” invested in such companies. Mr Fender reported that the HMRC had launched a criminal investigation in to the scheme’s structure ..

35/ + had allegedly arrested a director of the “patent companies in UK”, one Rupert Symons (from Warwick, a few miles away). Fortuitously one of Mr Fenders other liquidations from the group of 4, namely AFeeneyFS provides insight - it’s honcho Mr Feeney was appointed a …

36/ director (after Mr Symons ejected) in it would appear the bones of one such Blackstar scheme (with not just a Craig Humphreys as a shareholder but many swish people indeed) - Lares Technologies Ltd (08057634). The notes to the accounts being particularly illuminating …

37/ describing this “Blackstar scheme”, Blackstar WM’s & Atlantis’s parts in it + the rather “connected” Burgos Investments Ltd. A FT piece on the schemes provides added colour. It’s interesting to note: 1. the alleged offshore web of SPV’s/Trusts at the back end of the …

38/ “scheme”(extending as far as New Zealand) + business buds/patent attorneys messrs Symons, Hepworth & Lessard. 2. allegedly UK SPV’s Tyr Ltd & Sybre Ltd in the structure. 3. Messrs Symons & associates are trundling along as before. 4. one of their former associates Mr Jan …

39/ now a swish VC clues us in on Sybre Ltd. Blackstar’s “Schemes” didn’t just centre around companies/individual shareholders but also LLP’s/corporate members. A quick & dirty search for PCL in UK company charges yields 3 LLP’s - Minerva Products LLP, EnergyTap LLP & …

40/ Lissajous Energy LLP, each one allegedly purporting to hold the rights to a patent, the “Energy Tap” being particularly humorous. The LLP’s members comprised Mr Symons/Sybre Ltd(Messrs Symons/Lessard), The Technology Agent(Messrs Symons/Lessard), Blackstar (Europe) Ltd ..

41/ + the “Investors”- European Braking Systems Ltd, Jon Richard Ltd, Cossatto Ltd & Sapplicator Ltd. It’s interesting to note all 4 “investors” were Manchester based businesses, profitable, from diverse sectors + 3 of the 4 by coincidence shared the same local ICAEW auditor.

42/ It’s further interesting to note the liquidator of Blackstar (Europe) Ltd was/is also the liquidator of Minerva Products LLP & Lissajous Energy LLP (N.Patel, Re10 Restructuring & Advisory) .. EnergyTap LLP was struck off.

43/ Mr Fender (5.31) reports £3.3m of possible recoveries subject to his legal advisor’s review but provides no detail. Mr Fender (5.32-5.33) reports he will be taking “legal advice” on Blackstar WM’s very own E Shares scheme “endgame” covering Messrs Snowden, Fitzpatrick, …

44/ Dobson, Humphreys + the £1.7m uncalled/unpaid due to the company on the E shares. Mr Fender reports(5.34) a further disputed £1.2m due to the HMRC on an E shares “scheme”. In 04/2020 very surprisingly it was announced that Blackstar WM was moving from administration to ..

45/ dissolution + reading Mr Fenders attached report it would appear that despite Mr Fender’s legal advisor the FCA’s permission for Blackstar WM’s administration hadn’t been obtained + upon retrospective application to the FCA was refused. A creditors voluntary liquidation …

46/ for Blackstar WM(some circa £80k in administrator/legal fees & costs later + minus the client database/contracts) has taken place + a few days ago Blackstar WM was put in to the ground(dissolved). We are finally left pondering who was Mr Fender’s legal advisor “JSCS Ltd” ..

47/ (which doesn’t appear on the SRA or Companies House registers ?) + the mysteries that still remain - one would hope the @TheFCA, @FSCS, @HMRCpressoffice & @ICAEW can answer them. The no. of FSCS/FOS claims by claims company has not been disclosed by FOS/FCA/FSCS.

48/ As Mr Fender has to date not filed reports on any of the other 3 liquidation cases we’ll take an overview for now. It’s reported that FCA IFA AFeeney FS (honcho - Mr Feeney): 1. were using unauthorised introducers, together peddling allegedly “Store First” etc much like ..

49/ “Blackstar” who had a Blackstar “scheme” + Solihull in common with Mr Feeney. 2. had engaged Ms Jane Sanders (who some LCF Bondholder victims will no doubt have heard of) who has made @thetimes before + more recently (in terms of her relationships with …

50/ Mr Fender, #LCF Crew & LCF bondholder victims) made the Evening Standard/Tunbridge Wells Times. 3. were subject to circa 45 FSCS miss-selling claims (25 FOS judgements against the firm already) with 20 or more claims via Claims lawyers “Smooth Commercial Law”.

51/ It’s further interesting to note (on the Statement of Affairs Creditors) FCA CMC (Claims Management Company) “Money & Me Claims” who Citywire have coincidentally reported on before in a Solihull context citywire.co.uk/new-model-advi…. The no. of FSCS/FOS claims by claims company …

52/ has not been disclosed by FOS/FCA/FSCS. Next on Mr Fenders insolvency list was Torch WM based in Wales, again with “rafts of FOS/FSCS claims” coming down the pike with a M.O. of using unauthorised introducers & pension transfers to DFM SIPPs with large upfront charges ..

53/ & high risk including allegedly the notorious “Organic DFM SIPPs” (Organic Investment Management Ltd) . Prior to going in to default 14 FOS claims had been upheld, the no. of FSCS/FOS claims by claims company has not been disclosed by FOS/FCA/FSCS.

54/ The last of the 4 insolvency cases of Mr Fenders was the notorious FCA IFA Asset IFA which as with the other 3 used unauthorised introducers. One of Asset IFA’s unauthorised introducers Pension Connect Ltd was caught in a BBC Panorama expose on the infamous Cape Verde ..

55/ minibond property “Scheme” The Resort Group bbc.co.uk/news/business-… AND dailymotion.com/video/x6rc2e2. Key Pension Connect people were allegedly previously working in The Resort Group’s “in house” unauthorised introducers before they were shut down. Needless to say Asset IFA …

56/ allegedly peddled The Resort Group minibonds utilising DFM SIPP providers. The FSCS is sitting on the huge number of 150+ miss-selling claims totalling £m’s. The no. of FSCS/FOS claims by claims company has not been disclosed by FOS/FCA/FSCS. It’s worth noting the large …

57/ sums that FCA CMC’s(Claims Management Company) can make for relatively little effort by obtaining FCA IFA client data +/or herding/grooming miss-selling victims with the CMC typically keeping 35%+VAT of the claim + typical FSCS/FOS claims on these “schemes” upwards of £50k.

58/58 We await Mr Fenders final liquidation accounts for Blackstar WM hoping for large recoveries (to cover HMRC/miss-selling claims). Case D3677 (Regulatory penalty of £1,000 in respect of breaches of previous undertakings) & “Hydra-Valve” Ltd (07358232) are for another day.

correction - Sanderlings LLP (Net Liabilities of £156,946) should read Mayfields Sanderlings LLP (Net Liabilities of £34,538)