Regulated and unregulated advisors advised members of the general public to invest into Ethical Forestry Ltd (usually through a SIPP set up and administered by a SIPP company such as Liberty SIPP Limited or Guinness Mahon). Ethical Forestry Ltd was a Bournemouth-based investment company which invested in the plantation of trees in Costa Rica. The company, however, went into liquidation in 2015 and as a result thousands of UK investors may have lost considerable sums of money.
The investment model was based on the planting, cultivation and harvesting of Melina Hardwood over 12 years. It was pitched to investors as a secure, high yield and environmentally friendly opportunity with a potential return of up to £104,000 at the end of the scheme. However, the investment was not as secure as it was billed to be. The liquidation of the company and an investigation by the Serious Fraud Office (“SFO”) left investors unsure of the value of their investment, and difficulties were furthered by serious damage caused to the plantation following Hurricane Otto in 2016.
As Ethical Forestry Ltd investments were high risk, and illiquid, they weren’t suitable for ordinary investors looking to grow a pension pot. In these cases it is possible for customers to seek compensation and recoup some of their losses. If you have invested into Ethical Forestry, please contact us today to see how we can assist.