Bankruptcy Fund Hands £2.3M To Victims Of Ponzi Scheme

Law360, London (May 20, 2020, 12:11 PM BST) -- Britain's bankruptcy compensation scheme said Wednesday that it has refunded £2.3 million ($2.8 million) to victims of a Ponzi scheme that defrauded clients out of £13 million, which ended with its adviser being jailed for 14 years in April.

The Financial Services Compensation Scheme confirmed that it has paid out on 40 successful claims against the Scottish company. It persuaded dozens of investors to sink their life savings and retirement funds into high-interest accounts that supposedly guaranteed returns.

But the money was funneled into a Ponzi scheme, which used cash from new investments to pay interest owed to existing clients. Alistair...

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