View more on these topics

IFAs condemn ‘scam’ promising 40% ‘guaranteed’ returns

gold bars and coinsIFAs 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.

Recommended

1

Lloyds plans sale of London headquarters

Lloyds Banking Group will soon sell off its London headquarters, according to reports. The bank stands to make £140 to £150m from a sale and leaseback deal on its 25 Gresham Street City office, according to the Financial Times. While the paper reports that Lloyds is likely to stay in the building under a long […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

There are 23 comments at the moment, we would love to hear your opinion too.

  1. Does the FCA know about this individual a 20 year old now is the time for them to nip it in the bud.

    • Since when did the FCA ever nip ANYTHING in the bud? Too busy sharpening up their knives for the next ‘Whoops, we didn’t see any of those problems coming’ review.

    • Not sure why they would care as they clearly don’t authorise him – they have no power to do anything to him. If its a scam then its a criminal matter.

  2. Why not invest in it, you cannot lose. When the fund fails just write to FSCS and FOS claiming it was missold and they will give you your money back, all paid for by us poor idiots who pay the levy!

  3. Sadly someone will have a barge pole I fear. One would hope that the FCA are on this one.

    This one is of interest, it is called ‘Buy to Let Cars’

    Good use of words like investment, returns etc but from what I see it is not regulated

    https://www.buy2letcars.com/our-investors/

    They say that “Please note that nothing on this website, including the information about risks below, is financial advice. You may wish to seek your own advice from an Independent Financial Adviser before you invest”.

    Not quite absolution ?

    Their website states “Since being founded in 2012 we have not only enabled thousands of people to drive a new car but have consistently delivered returns of between 7% and 11%** to every investor”.

    No FSCS, no FCA mention anywhere.

    So when is an investment product not regulated?

    When the ‘manufacturer’ feels like it I guess.

    There is a lending arm- “Wheels for Sure” that is regulated. It lends to 50% of people in the UK who have experienced past problems with your credit who may think that driving a new car is beyond their reach.

    And yet still no risk warning on BTL cars????

    • Is there a buy to let women investment, by any chance Derek?

      So as not to appear sexist my wife would like to know if there is a buy to let toy boy site as well.

  4. Scott Gallagher says “The use of a gmail address is another warning sign”. Is it? Or is it just old fashioned and, so, not hip anymore?

  5. Obviously a scam and clearly an individual acting without FCA authorisation.

    I would hope the regulator are already in the process of putting a stop to this apparent fraudster’s activities.

    Sadly, the firm isn’t yet listed on the FCA’s list of known fraudulent businesses.

  6. How long have we been advised to stop smoking, Stop Drinking and Driving, walk more and faster!! But do we ,, there will always be someone!!

  7. So are Trading Standards, the Police, the FCA etc going to pay Mr Odunuyi a visit at Polehill Road in Hillingdon then?

    • Probably not, unless or until people have already lost money. The fact that the likelihood of them doing so is a virtual certainty doesn’t seem to be a factor. Wait until things go wrong and only then think about doing something. We’ve seen this regulatory strategy so many times before, have we not?

  8. Why is this even being discussed? What about the letter from Nigeria offering £1.5 million (and more) if you send information?

    There is substantially no difference – except that this one appears to be onshore.

    Yet again this sort of thing goes to show how very thick some people are if there is any chance of them falling for this.

  9. To quote their own hype, “Dio Investments Limited is a new upcoming Trading Tuition firm that teaches indiviuals how to trade binary options in a single day we offer a faster time duration than our competitors for our firm to stand out.”

    And binary options aren’t currently an FCA-regulated investment so, as John Reilly astutely pointed out, it’s down to Trading STandards and/or the police.

  10. If it looks like a duck, walks like a duck and quacks like a duck……………..

  11. Although we cannot improve on this `guarantee`, we have just taken a call from a client`s (architect) husband who found “extremely tempting” an offer from Keystone Property Group involving a 20% return over forty weeks. Exclusively for sophisticated or high net worth investors, this scheme provided fully secured capital and a corporate guarantee on 100% of funds invested (company formed 9 months ago, using a mail forwarding service address).
    These schemes are rife.

  12. I received an unsolicited call from an outfit called Red Ribbon Asset Management last Thursday.

    Friday morning a letter arrived from them, telling me they are regulated by the FCA and that their registration number is 741275.

    The registration number is theirs but they were an AR, not directly regulated – and they are no longer an AR for anybody.

  13. This is just one of many….. I must get one of these types of emails a day, with guarantees, high yields (14-18%)blah blah blah investing in everything from car parking spaces to forests, student lets, and back again

    And all of them make no mention of FCA, FSCS etc etc etc

    E-mail has gone the way of the phone 99.9% are spam, ambulance chasers, or cold calls

  14. Are they compound or simple interest rates..?

    There’s a mad Bitcoin scam I’ve seen too. Offers about 4% return every few hours, guaranteed of course. Seems to come from Asia.

  15. Paolo Buco nel Terreno 29th August 2017 at 4:19 pm

    It is for situations like this that the FCA should be out of the blocks protecting everyone involved in financial services (clients and industry personnel alike) and taking these crooks down immediately…..surely in this day and age it can’t be that difficult to set legislation up in such a way that every investment opportunity looking to market and sell itself to the UK public (whether a sophisticated investor or not) has to be analysed and approved by the FCA and other ‘experts’ as required before being given a licence to promote…that would not only stop scams it would also reduce the number of cases going to the FSCS…..time to use some logic here!!

    • Can’t be done. The demand on the FCA’s resources would be impossible, apart from which if the FCA were to approve anything, the ball would be unequivocally in its court if anything were to go wrong. So it’ll never happen.

  16. I recommend logging on to DIO Investments website and reading the section headed “Our Trading Strategy”. It’s hilarious. I found the bit above showing the minimum investment of £400,000 also highly amusing.

Leave a comment