July 17, 2024

Published: July 08, 2024, 12:30 pm

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Fortress Capital, the unregulated investment hack that dropped into administration last year, has been termed a Ponzi scheme by its administrators. They are pushing forward to declare the two directors, Ashley Reading and his daughter Cameron, bankrupt.

Begbies Traynor, with its team of insolvency experts, clarified that proceeding with the directors’ bankruptcy would allow an in-depth look into their personal finances. They unveiled their plan in a recent letter to creditors, also alerting them to the high expense of asset recovery in such Ponzi cases.

Fortress Capital assured an annual return of 18% to its investors, but the sudden collapse swallowed most of their lifetime savings. It had a diverse host of investors ranging from footballers like Scott McTominay of Manchester United to members of a South London Church.

A Metropolitan police investigation is currently underway and Begbies Traynor is striving to recoup the substantial losses of its backers.

The Reading family allegedly used the investors’ money for personal gains, including property investments in Spain and Dubai under Cameron Reading’s name. Her role at Fortress Capital was primarily managing investor relations.

Despite facing extensive criticism about the lengthy and expensive administration process, Ashley Reading continues to deny allegations, defining them as “defamatory.”

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Frequently Asked Questions:

Why is Fortress Capital being referred to as a Ponzi scheme?

A Ponzi scheme is an investment scam that pays profits to earlier investors using funds obtained from more recent investors. Administrators believe this is how Fortress Capital operated, promising high returns but using new investors’ money to pay earlier ones.

What could bankruptcy mean for the directors of Fortress Capital?

If the directors are declared bankrupt, it would permit a thorough examination of their personal finances. It could also help in recovering some of the lost assets of the investors.

Who were the investors in Fortress Capital?

The investor portfolio of Fortress Capital was quite diverse, including prominent figures from the sports world, such as Manchester United’s Scott McTominay, and even members of a South London Church.