STEPHEN HUNT APPOINTED TRUSTEE IN BANKRUPTCY TO JONATHAN BEACH, CHRISTOPHER MADELIN AND OLIVER MASON
Stephen Hunt has been appointed Trustee in Bankruptcy to Jonathan Beach, Christopher Madelin and Oliver Mason. These individuals were involved with the Magna Group which was shut down following an Insolvency Service investigation into the marketing of high-risk mini-bonds.
The Financial Conduct Authority (FCA) recently banned the mass-marketing of mini-bonds to retail investors, following serious concerns that they were being promoted to investors who neither understood the risks involved, nor could afford the potential financial losses.
The Insolvency Service investigation into the Magna group of companies discovered that marketing of the mini bonds was misleading, with marketing material overstating both the levels of security being offered and the true protections offered to them from the appointment of a ‘Security Trustee’.
Madelin and Mason, having secured deposits from investors, are believed to have been the beneficiaries of £2.5 million through director loan accounts.
MIX3 and MIXG took over £2 million in deposits from loan note creditors between 1 December 2019 and 25 February 2020, a period when the directors ought to have known that all of the companies were insolvent.
MIX2 had, by then, failed to pay its loan note holders when due, leading to a Default Event in all 4 MIX to MIXG Loan Note Instruments.
During this period, however, the directors paid themselves £425,021 with a further £370,471 lent to a non-UK company of which they were shareholders.
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