I was told there was little risk, says The Voice singer Kieron
KIERON Smith, a 26-year-old musician who recently appeared on BBC talent show The Voice, believes he may now have lost his house deposit following the demise of MJS Capital.
He was aware interest rates for cash savings were poor, so searched online for low risk investment schemes. He came across Direct Property Investments and, after expressing interest in the secure bonds advertised, was sent information on MJS Capital. Kieron says: ‘I wasn’t going to invest, and thought I would be best keeping hold of my cash, but I was told there was little risk to it all.
‘I was looking to use the money towards my first property but now I might have to save the cash all over again.’
Heather Martin and her husband David invested £50,000 over a threeyear period but interest payments ceased in late 2017 – at a time when the bonds were still being marketed to new clients.
Like Kieron, Heather and David invested via Direct Property Investments based on its promotions and repeated assurances of the use of FCA-regulated companies.
However, in reality, the regulated companies were only of benefit to the unauthorised MJS Capital, not the bondholders.
Heather says: ‘We were deceived into investing in these bonds by the great lengths to which they were described as a safe and reliable investment. It’s a free market for some unscrupulous firms, but not for ordinary people trying to put their capital to good use. More legislation is needed to protect investors in future.’
Heather’s lawyer, Pradeep Oliver at law firm Cripps, says: ‘The marketing brochure gave the impression the bonds were low risk with a high return, referring to FCA-regulated partners, insurance and a security trustee to protect investors. It is not clear what has happened to the funds but the fact MJS is being liquidated reveals they were not as safe as suggested.’
Another investor, who asked to remain nameless, put in £20,000. His
wife put in three times as much. He says: ‘I got conned. I have learnt my lesson and in future I will stick to mainstream financial products like shares, investment trusts, funds and corporate bonds with a proper board structure.’
Another man, who also asked for anonymity and whose health has been severely affected by the failure of MJS Capital, invested £45,000, built up over 40 years of saving.
He was repeatedly assured of ‘multi-layers of protection’ and did receive interest payments, but these stopped in July 2018.
He says: ‘Small-scale investors need to be very wary before they buy bonds through a broker.’