Hundreds of savers and investors could possibly lose millions of pounds as a result of the largest financial scam to hit the UK. It is believed that investors may have lost up to £80million in the Ponzi scheme that was run by Business consulting international.
Investigations by the FSA and the London Metropolitan Police now suspect the company was running a Ponzi scheme similar to other high profile cases in the US.
The term Ponzi scheme was named after one of Americas most well known con artists, Charles Ponzi
BCI offered the potential returns of between 6% and 13% a month. They claimed to lend to struggling companies looking to raise finance, however new investments were actually paying for returns generated.
Like a house of cards everything started to go wrong at the end of 2008 when investment dividends suddenly stopped being paid to investors.
Three investment consultants from BCI have been arrested and assets exceeding £1million have been seized by police.
The moral of this case is that if it looks too good to be true, then it probably is. Always seek Independent Financial Advice and ensure the Advisory firm is regulated by the Financial Services Authority.
