IFAs have roundly condemned an investment opportunity claiming to give a guaranteed 40 percent monthly return.
An email seen by Money Marketing from David Odunuyi of DIO Investments claims that “this is a guaranteed investment, no losses can occur”.
The email claims the fund is invested in “indexed securities…listed and traded on regulated markets in the United Kingdom” and would be suitable for either short or long-term investment.
According to Companies House records, Odunyi, the sole director of the firm, is only 20 years old.
DIO Investments’ accounts have been overdue since July, the firm’s entry also notes.
On Odunyi’s email there is no mention of the investment opportunity’s charges, an FCA authorisation number, the Financial Ombudsman Service or the Financial Services Compensation Scheme.
Rowley Turton IFA Scott Gallacher says “Without doubt, it is an absolute scam. There are so many warning signs. How can anything ‘aim’ to give ‘guaranteed’ returns? It’s either guaranteed or it’s not.”
The use of a gmail address is another warning sign and 40 percent guaranteed monthly returns would turn a £1,000 investment into £585bn in just five years, Gallagher notes.
Carlson Wealth Management IFA Steve Carlson also strongly warns against the offering.
He says: “There is no such thing as an investment that can’t lose money and people should be extremely cautious about anyone promising guarantees, especially when they are also promising ridiculously high returns as that can be a very easy way to lose all your money.”
Highclere Financial Services IFA Alan Lakey says: “I would not touch it a barge pole. It is run by a 20 old, not regulated by the FCA and there is no mention of the FSCS.”
DIO Investments was approached for comment but was unavailable.