View more on these topics

Insurance giant to sue LC&F marketing boss over separate alleged fraud

Boss of Surge Group, parent company of Surge Financial, a digital marketing company, which made millions advertising London Capital & Finance unregulated products, Paul Careless, faces a lawsuit in a separate case of fraudulent advertising.

Yesterday (3 July), Master Matthew Marsh approved an inclusion of Careless in a lawsuit, claiming fraudulent misrepresentation.

Home appliance insurer Domestic & General Insurance, which has nine million UK customers, sued Surge-owned Service Box Group for trademark infringement in December 2018.

D&G applied to the High Court on Monday to include Careless and three other directors as co-defendants so that the claim is directed at the “real wrongdoers” in the wake of the separate investigation against Careless.

Careless was arrested last month by the Serious Fraud Office in the LF&C case and released the same day. D&G claims the circumstances of Careless’s arrest in the LF&C case should serve as “similar fact evidence” to support the insurer’s claim that Careless takes advantage of “unsophisticated consumers for his own financial gain”.

In a skeleton read in front of the High Court on Monday, seen by Money Marketing, D&G’s QC opens the statement with: “This case is about a particularly nasty fraudulent enterprise”, he describes alleged practices of the firm, which included cold-calling.

A D&G spokesman says: “We have taken legal action against what we believe is a rogue trader that has been misleading and taking advantage of consumers, many of them elderly and vulnerable.

“We are pleased that an interim court judgement requires Service Box to cease this behaviour, and we hope it sends a strong deterrent to others seeking to exploit the market.”

A spokeswoman for both Service Box and Surge said: “Our [Service Box] lawyers are vigorously defending these spurious and unfounded allegations.”

Most investors were contacted by marketers

Within its investigation of the LF&C case, the Financial Services Compensation Scheme asked investors to outline what method of communication was used if they received information or advice which influenced their decision to invest.

A poll in a Facebook group for LF&C bondholders asking “how many (of us) had a pre-sales call or email of any kind prior to investing and how many just went through the whole process without speaking to anyone,” revealed that most investors had marketing via emails or calls involved in the process.

The majority (266) ticked the option “Online then the calls started,” another 155 selected “I had a call or email”. Only 119 people said “I did the whole process online”.

The FSCS investigation into how Surge advised the LF&C bondholders on the investments is ongoing.

Recommended

Aim-listed adviser eyes trio of acquisitions on growth trail

Aim-listed advice and discretionary management firm Harwood Wealth is close to scoring another three acquisitions, it has revealed. Harwood currently has ‘heads of terms’ signed with a trio of firms, and says there “continues to be no shortage of opportunity”. Harwood’s results read: “Whilst we face competition from other acquirers of IFA businesses, we do […]

Advisers flag doubt over DB market performance

Three quarters of advisers feel the defined benefit transfer market is struggling to match supply with demand and work effectively, research shows. Figures from Aegon found two thirds of surveyed advisers who currently provide DB advice say there are not enough specialists to meet customer demand. These figures follow the FCA’s reveal of a recent […]

1

Johnson courts fund bosses on way to premiership

Front runner in the race to be prime minister Boris Johnson has courted wealthy private equity and hedge fund bosses in an exclusive breakfast meeting, according to Reuters. Johnson raised donations for his leadership campaign in the gathering last Tuesday, according to sources familiar with the matter. The breakfast took place at private members club […]

Alistair McQueen

Aviva’s McQueen: Pensions industry must improve trust with public

The next decade will make or break the reputation of our industry. Our clients need us to make it. This period will see a record number of people entrusting us with their hard-earned money thanks to automatic enrolment. More than 10 million people have now been introduced to a workplace pension since 2012, trusting us […]

The unconventional becomes the norm

Caspar Rock, Chief Investment Officer, and Richard Jeffrey, Chief Economist, review the state of the economic landscape. It started with an unconventional recession, one that emanated from a near collapse in the financial system but which, in some larger economies, resulted in a comparatively modest increase in unemployment. Then we had unconventional monetary policy, encompassing […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

There is one comment at the moment, we would love to hear your opinion too.

  1. Julian Stevens 4th July 2019 at 12:03 pm

    And how does the FSCS propose verifying or refuting the truth of these claimants’ statements that they were called or e-mailed and, as a result, advised?

Leave a comment

Close

Why register with Money Marketing ?

Providing trusted insight for professional advisers. Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and thought leadership.

News & analysis delivered directly to your inbox
Register today to receive our range of news alerts including daily and weekly briefings

Money Marketing Events
Be the first to hear about our industry leading conferences, awards, roundtables and more.

Research and insight
Take part in and see the results of Money Marketing's flagship investigations into industry trends.

Have your say
Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

Register now

Having problems?

Contact us on +44 (0)20 7292 3712

Lines are open Monday to Friday 9:00am -5.00pm

Email: customerservices@moneymarketing.com