FSCS accepting claims against Midas over Ponzi scheme

FSCS accepting claims against Midas over Ponzi scheme

The Financial Services Compensation Scheme is now accepting claims against Midas Financial Solutions, an advice firm accused of running a £12.9m Ponzi scheme.

Although FSCS is accepting claims against Midas Financial Solutions (Scotland) Ltd, claims have not yet been passed to FSCS's claims processing teams for assessment. This is because the body is still carrying out its investigations into the activities of the firm.

According to the compensation scheme, Midas pitched the investments as offering attractive returns on "favourable terms" due to the owner's relationship with a high-street bank. 

[Greig] formed a fraudulent scheme to obtain sums of money”

But the FSCS has alleged that in reality the funds were placed in a Ponzi scheme operated by the advice firm's owner. Alistair Greig, 65, has appeared in court charged with defrauding hundreds of investors.

Prosecutors claim Greig "formed a fraudulent scheme to obtain sums of money". They claim the scheme was carried out between August 30 2001 and October 14 2014 at addresses in Aberdeen, Aberdeenshire and Lincolnshire.

It is claimed Greig knew there were no high-interest accounts with the Royal Bank of Scotland.

The Crown also claims "the sums of money returned to said investors did not represent interest made on the sums of money deposited by them but were sums of money that had been deposited in the scheme by other investors".

The charge states that by "such false pretences" Greig obtained a total of £12,982,789.23 by fraud.

He is also alleged to have accepted deposits without being an authorised or exempt person under the Financial Services and Markets Act 2000.

Greig, denies three charges relating to fraud and breaching financial and proceeds of crime laws, said to have been carried out between August 30 2001 and October 14 2014. The trial continues.

Last year 95 clients of Midas, which was operating as an appointed representative, lost a case against its network brought in a bid to reclaim funds lost in the alleged £12.9m scheme.

 

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