Dolphin Trust GmbH Warns Investors

Having spoken with many concerned investors over several months, the TLW financial mis-selling team has been closely monitoring developments with the troubled investment company. In our previous blog, we highlighted that Dolphin Trust GmbH had rebranded to the name German Property Group GmbH (GPG). Investors were also warned at that stage that maturity payments could be delayed by up to a year.

The latest development is a letter to investors dated 4th May 2020, where GPG Chief Executive, Charles Smethurst states:

“Negotiations with interested parties wishing to buy the whole portfolio has now come to a conclusion…due to the current climate of uncertainty investors decided they would only be interested in limited properties.”

Smethurst adds:

“the only way forward is the choice between full restructuring of GPG debt or insolvency. With the current economical climate I believe we would see a reduced amount that CPG would be able to return to our investors.”

TLW’s specialist financial mis-selling solicitors are regularly contacted by worried investors who have not yet received the returns promised from the scheme or who are struggling to get their capital investment back. Many did not realise and were not made aware by their financial adviser, that schemes like this can be high risk.

The maturity payment delays, interest problems, the possible sale of properties that have not yet been developed, and now the suggestion of a substantial debt restructuring as an alternative to insolvency will create understandable worry for investors.

The latest letter appears to confirm the findings of an investigation by BBC Radio 4 featured on the “You and Yours” programme last year. The BBC investigation pointed out that some of the properties to be renovated and converted were unsuitable, requiring far more investment than was projected. The report also questioned why investors had no details about the specific investment properties or information about commissions paid on these transactions.

Given his financial mis-selling experience, TLW partner Peter McKenna was interviewed on the BBC Radio 4 programme “You and Yours” and following this latest letter to investors, Peter comments:

“We have long been concerned for Dolphin/GPG investors and this latest update to the investors justifies our concerns. It seems to be becoming more and more likely that not only will investors not get the returns they were expecting from their investment, but they will lose, at least part, of the money which they have invested. Any debt restructure is likely to result in significant losses to investors while insolvency may result in investors losing the whole of their investment.”

TLW Solicitors are experienced in claiming no win no fee compensation for clients who have invested their pension funds in high-risk unregulated investment products via a SIPP. TLW’s specialist lawyers can also pursue a claim even if the IFA has gone out of business.

In such cases, as well as being entitled to claim towards the amount which you invested, you may be able to claim:

• Fees paid to the IFA and SIPP company who arranged your investment.
• The money you would have made if your pension/savings had remained where they were.