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The FCA has secured a chapter order in opposition to father and son administrators of a collapsed SIPP introducer who didn’t pay again £10.7m in restitution to purchasers.
Father and son Craig and Lee Lummis, aged 64 and 39 respectively, supplied so-called ‘free pension opinions’ to clients.
Greater than 2,000 individuals who undertook a evaluation had been inspired to switch almost £92m into excessive danger SIPP-connected investments, a lot of them dropping a lot of their cash.
The pair’s agency, Avacade, was unregulated.
In August 2020, following a trial, the Excessive Courtroom ordered unlawful pension introducer Avacade, Alexandra Associates and their administrators to pay £10,715,000 in restitution to shoppers.
Following a Excessive Courtroom order, the Courtroom of Attraction upheld findings of breaches in opposition to Alexandra Associates (UK) Restricted buying and selling as Avacade Future Options and Craig and Lee Lummis, in 2021.
The defendants didn’t fulfill the restitution order, the FCA mentioned, and, in consequence, on 21 November 2023, the FCA secured chapter orders in opposition to Lee and Craig Lummis. The Official Receiver (or a Trustee in Chapter) will examine the monetary affairs of the 2 bankrupts and administer their estates.
A 3rd director of Avacade, Raymond Fox, was beforehand made bankrupt on in August 2020.
The FCA secured a winding up order in opposition to Alexandra Associates (UK) Restricted on 22 February 2022 and the corporate was subsequently dissolved on 10 April 2023.
The duo had been had been banned as administrators in 2021 after repaying themselves over £1.3m forward of collectors.
Greater than 2,000 traders had been persuaded to switch almost £92m from their pensions into the SIPPs. From these investments Avacade and one other firm, Alexandra Associates, earned commissions within the area of £10.8m. Lots of the underlying investments have failed or are in liquidation.
Avacade Restricted and related events engaged in arranging and selling investments with out FCA authorisation and made “false and deceptive” statements to traders which induced them to switch their pensions into SIPPs after which into different investments akin to HotPods (workplace area for lease), tree plantations and Brazilian property developments.
One of many failed SIPP schemes the pair had been concerned with supplied investments in Costa Rican forestry plantations.
Craig Lummis and his son Lee had been every given directorship disqualifications in 2021. On the time the court docket heard that their agency, Avacade Restricted, was integrated in January 2010 and traded as Avacade Funding Choices. The corporate supplied unregulated funding brokering companies, together with ‘free’ pension opinions.
Avacade went into liquidation in November 2015, sparking an investigation by the Insolvency Service.
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