Colonial Capital Group Corporate Bonds
Colonial Capital Group Corporate Bonds was an investment scheme heavily marketed by Black Star Wealth Management, who are now in administration but had close links with the unregulated pension introducer Avacade while they were in operation. The Group included Colonial Capital and Colonial Capital LLC, and was controlled by common directors Kevin Neil and Peter Shuttleworth
A scheme to profit from the US housing market crash
Incorporated in 2014, the scheme was set up to take advantage of the collapse in the US housing market by focusing on foreclosure sales in the Chicago area. Units would be bought for small sums of money and then after refurbishment would be leased on high rental yields paid and underwritten by the US government.
Carrying a 12% return – subject to a minimum initial investment of £10,000 – the three-year bonds allowed investors to receive interest payments every six months or have them compounded and paid in full on redemption. For extra peace of mind, there was the promise that the number of bonds issued would not exceed 85% of the value of the property portfolio.
Regrettably, this was yet another high risk unregulated overseas property scheme targeted at pension holders via Self-Invested Personal Pensions (SIPPs) to end in failure. The Group collapsed into administration in March 2017 and the most recent liquidator’s reports makes for discouraging reading – there are substantial inter-company loads and a total of nearly £12 million due to investors, inclusive of unpaid interest.
If you lost money through an investment into Colonial Capital Group Corporate Bonds or a similar scheme we’d like to hear from you as soon as possible. We understand how devastatingly it is to find yourself in a situation like this and we’ll do everything we can to seek the justice you deserve. It’s easy to start your claims process – call us on 0800 193 1234 for a free, no-obligation chat with one of our expert advisors who will explain your next steps.