The Paraiba Projects Mini Bond
Paraiba Projects is another of the investment schemes once espoused by Avacade, a company that has now gone into liquidation. Avacade have been the subject of major investigations by the authorities, in part because of the fact that they offered unqualified advice and encouraged people to invest in unregulated schemes. They often did this by way of offering a free pension review.
Members of the public were contacted – often by cold-calling – and offered such a review, but generally the advice offered in the review pushed people towards schemes that offered huge commissions to Avacade in the first place. And while at the time the advice given by Avacade might not have been out and out illegal, it was certainly bordering on the extremely unethical.
Far too many hard-working, innocent and unsuspecting members of the public trusted the advice they received, and saw an opportunity to add to their pension savings and to look forward to a more comfortable retirement. For many of them, the end result was the loss of almost everything they had. Meanwhile, those involved in such schemes got ever wealthier.
As well as the Paraiba Projects Mini Bond, Avacade have coerced investors into sinking their money in Ethical Forestry, an unregulated scheme that should never have been targeted at ordinary members of the public. Given the high risks that were involved, it should only have been aimed at sophisticated investors of high net worth who would have understood the risks involved.
If it sounds too good to be true it might be just that
The Paraiba Projects Mini Bond is another scheme that sounds exotic, interesting and potentially profitable. Its main focus is on building homes in northern Brazil, specifically a 350-acre residential condominium resort called Brisas de Coqueirinho Country Club. Paraiba is a state on the country’s Atlantic coast, and because it’s densely populated more housing would be a major benefit to the community.
Claims made in the marketing material suggest this bond could produce annual returns of 11%. It’s billed as a terrific investment opportunity, but it remains to be seen whether it will live up to those expectations. Back in 2016, published accounts suggested such claims were unlikely to be fulfilled. The Paraiba Projects Mini Bond may not be as sound an investment as the people at Avacade suggested.
Transferring a steadily performing pension pot into a SIPP makes good sense for some people, but for others it’s a strategy that can be fraught with risk. It’s tempting of course to try to get more from your money, especially perhaps as retirement gets ever closer, but if you invest in an unregulated scheme it’s likely to be a gamble that should never be taken.
If you have lost money through a SIPP that you were talked into taking, we at Beat the Banks may be able to help. We have dealt with a number of cases involving Avacade and others, and we have the experience and the know-how to seek the justice our clients deserve. Call 0800 192 1234 to find out more.