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tdlawyer
tdlawyer, Lawyer
Category: Law
Satisfied Customers: 1096
Experience:  11 years experience of general practice.
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In 2012 and 2013 I purchased as an investment quantities of

Resolved Question:

In 2012 and 2013 I purchased as an investment quantities of Rare Earth Metals (about 47,000 pounds sterling paid) and Graphene (about 88,000 pounds sterling paid), which are supposedly in bonded warehouses in England.
The company from which I bought the Rare Earth Metals is now under investigation by the police for fraud, and is in the process of being liquidated. Although I have holder's certificates I do not know if I really have the metals in storage, and if I do there is very little possibility of selling them without this company.
A similar situation exists with the company from whom I bought the Graphene, except that as far as I know it is, as of now, not under police investigation. They have just disappeared, and I have filed a report to the police Action Fraud department. The brokers I dealt with are uncontactable but I have the name and address of one of the directors, which I obtained from Companies House.
Is there anything I can do myself right now to try to recoup my money, or would it be best to wait for the outcome of the police investigations?
Submitted: 3 years ago.
Category: Law
Expert:  tdlawyer replied 3 years ago.

tdlawyer :

Hello, welcome to the website. My name isXXXXX can assist you with this.

tdlawyer :

Do you know the individuals behind the company/that you dealt with?

Customer:

In the case of the Graphene I have the name of the Compliance Officer with whom I dealt, but he is now not contactable.

Customer:

For the Rare Earths, I have the name of the Managing Director.

tdlawyer :

Are you pretty sure this might be a fraud of some type?

Customer:

I am not sure. However the commodities were bought with the promise by the two companies to find a buyer, and now they will be almost impossible to sell as the companies have disappeared.

tdlawyer :

Okay. Well, if you can work with the police and work out if there is a fraud, then you might be able to obtain what's called a freezing order, to freeze the assets of the company and those whom you can show have some involvement in any fraud.

tdlawyer :

If this ins't a fraud and it's simply a company that has gone bust in the usual course of things, then there is probably very little you can do in all honesty to recover your money. That said, it is worth speaking to the Financial Services Compensation Scheme (www.fscs.org.uk) and the potentially the Financial Ombudsman Service (www.financial-ombudsman.org.uk).

tdlawyer :

If you issue court proceedings first, the ombudsman is unlikely to wan to get involved, and for the amounts of the investments you're talking about, I would encourage you to go and see a solicitor and have some initial investigations done to see whether you can establish if there is fraudulent conduct/behaviour here, as this will alter what you consider doing.

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