Loan Notes Investment Arm of Seventy Ninth Group
Under Investigation By Police

The City of London police first made public their investigation into the 79^th Group on 28^th February 2025, stating that the group is “believed to be offering loan notes to investors with a high interest return over a fixed period.”

The police continued:

“The 79th Group operate in real estate claiming to specialise in the acquisition, management and development of lucrative assets. They offer investment opportunities selling loan notes secured against properties.

Investors are contacted by various third-party introducers offering the opportunity to invest with fixed returns between 12% for a minimum £10,000 investment and 15% for a minimum £25,000 investment.

The 79th Group tell investors that funds are used for real estate, wealth and aviation. Another area of business advertised under the 79th Group is mining for natural resources in countries such as Canada and Guinea.

So far, four people have been arrested in connection with 79th Group. A large amount of cash, luxury watches and jewellery were found during searches of properties, all of which were seized.

All people arrested have been released on bail and enquiries are ongoing.

Anyone who has been contacted by investors from the 79th Group, or working on behalf of the 79th Group, should contact the City of London Police immediately.”

Loan notes are essentially a debt agreement, where the issuer promises to repay a principal amount, plus interest, at a specified time. They are often used as a means of raising capital for specific business projects. The success of the project is crucial to the business’ ability to repay the loan and, in turn, the ‘guaranteed’ returns. Loan notes are also called Mini-bonds.

Seventy Ninth Group is not the first company to make headline news about loan notes. We previously reported the ‘mini-bond’ investment mis-selling scandal by Magna Group. Magna Group investors lost millions as a result of misleading marketing tactics and false information about the company’s financial health.

The Financial Conduct Authority (FCA), the City watchdog that regulates the financial services sector, banned the mass marketing of mini-bonds in 2020, deeming them only suitable for high-net-worth and sophisticated investors, not everyday people.

The 79^th Group posted on their social media pages on 5^th March 2025, categorically denying any wrongdoing, adding that they were working diligently with their legal advisers, and had appointed independent forensic accountants to review the business.

The company issued a clarification statement on 24^th March 2025, denying any involvement in suspected fraudulent conduct. The company believes the allegations are false and is cooperating with the police investigation team.

The 79th Group went on to say:

“The actions of City of London Police have been extremely damaging to our reputation and has put the business at significant financial risk, therefore, to protect the Loan Note holders and other creditors, as well as the business from further financial harm, we are seeking a temporary suspension of all redemption and interest payments for our loan notes.”

Some customers have voiced their concerns on social media: “I have 3 investments with them. Worrying is an understatement especially with website and emails down”, said one.

A temporary suspension of “all redemption and interest payments” for the 79^th Group’s loan notes means that investors’ money is frozen, and they will not receive any interest payments due at this time. There has been no indication of when the suspension might be lifted or if the company’s finances are robust enough to honour the payments.

Investors may be wondering where they can turn or if there is any way to be compensated for financial loss.

Sarah Spruce, Legal Director at TLW Solicitors, says:

“The FCA does not regulate companies that issue mini-bonds or loan notes. However, any investment advice provided by introducer firms regarding mini-bonds is considered a ‘regulated activity’ and should come with clear warnings about suitability and high risk. If that advice was unsuitable or misleading, you may have grounds for a compensation claim.

The Financial Services Compensation Scheme (FSCS) does not cover mini-bonds. It is the government-backed scheme that can step in and pay compensation when an FCS-regulated firm fails. If the 79^th Group fails in due course, it will be crucial for investors to determine who is responsible for their financial loss.

With an ongoing police investigation, it is unlikely that people will receive any money back in the short term. Given that the police are calling the actions of the 79^th Group ‘suspected widespread fraud’, investors may, in due course, be able to make an APP Fraud claim through the Financial Ombudsman Service. FOS is a government-backed organisation set up to protect consumers and its function is to settle disputes between financial institutions and their customers.”

APP fraud is a significant problem in the UK, with hundreds of millions of pounds lost every year to scammers. APP fraud involves not only investment scams, but also romance scams, cryptocurrency scams and even conveyancing scams.

All APP fraud cases share common features. Clever social engineering tactics persuade unsuspecting investors to transfer money directly from their bank accounts into the control of the fraudsters. They don’t realise they have been scammed until it is too late, by which time the money has been moved elsewhere, often overseas.

The specialist team at TLW Solicitors helps many people who have fallen victim to a wide range of Authorised Push Payment investment scams. Whilst it is still early days in the 79^th Group investigation, investors should contact our team to discuss their options and explore whether they may be eligible to make a ‘no-win, no-fee’ refund claim through the Financial Ombudsman Service (FOS).