Nine investors are pursuing their financial advisers for a total of £12m after being advised to invest in a film tax avoidance scheme.
Yesterday, the Crown Prosecution Service announced it is to prosecute five men in relation to the scheme following an HM Revenue & Customs investigation.
It is alleged between January 2002 and July 2011, the five falsely claimed the value of allowable losses and defrauded investors through false accounting documents.
The nine investors say they were advised to place investments in the £125m scheme, but were not made aware of the risks involved by their respective financial advisers.
Claims firm Rebus Investment Solutions is representing the nine investors. The highest individual claim is for £1.8m.
Rebus head of client relations Martin Taylor says there are three advice firms involved but declined to name them.
He says: “The investors are now looking as though they could have lost their equity and they have not had any tax relief. They could be in a catastrophic position.
“This has come to light and clients are wondering what it means for them and the uncertainty is going to be there for a considerable time.”