Land cheats to pay back £17m

Hopeful news for victims of a farmland investment scam that I first warned about in 2013.

African Land Ltd promised 15% returns on plots of rice fields in Sierra Leone, saying: “We harvest – you profit.”

But more land was sold than it owned and Capital Alternatives Limited, which marketed the scheme, took 50% of money invested as commission.

A protracted legal battle began after the Financial Conduct Authority said the companies were not authorised to sell investments, which were promoted with “false and misleading statements”.

This week it was vindicated after the High Court ruled that almost £17million should be repaid by Capital Alternatives and leading figures, including Robert McKendrick, Renwick Haddow and Marcia Hargous.

The FCA will return the money it gets to victims.

“This judgment should send a clear message to all of those who use corporate facades to sell dubious investments,” said FCA executive director Mark Steward.

“We will do what it takes to hold them to account for their misconduct.

“We are acutely aware from experience that the risk to investors who deal with unauthorised firms is that most, if not all, investors are likely only to get a fraction of their money back.

“Consumers should recognise that there are huge risks involved when investing with unauthorised businesses.” OUT OF POCKET Robert McKendrick