Government officials have launched an inquiry into potential help for dozens of victims of the Gary Hexley fiasco.
The Financial Services Compensation Scheme has issued a statement confirming it is looking into whether investors in Hexley’s collapsed Sutton Coldfield-based Greenfield International company are eligible for financial redress.
The statement raises hopes that claimants owed up to £80,000 could be compensated despite the fact that Greenfield, a property development company, was not regulated by the Financial Services Authority.
The pledge by the Government-backed FSCS comes as investors revealed that only one claimant – Walmley-based Mary Lamming – is thought to have been compensated from a total of over 260 owed £2,077,436.
Her husband, retired physicist Gerry Lamming, said the couple had also been turned down over their claim for a separate investment in joint names.
“It is illogical nonsense. The compensation claim was made on one form for both investments – the information was identical.
“We have been battling away at this for nearly four years through a period of ill-health and it has consumed an immense amount of time and effort. We are very frustrated and annoyed but we are not giving up.
“We felt all along that our investments were with regulated companies. Our whole argument has been that we were advised by a regulated IFA working for an FSA-authorised company.
“You cannot wear your FSA-authorised hat on a Tuesday, take it off on a Wednesday, and put it back on on a Thursday.”
The Financial Services Compensation Scheme said: “FSCS will give careful and sympathetic consideration to any claims, but can only compensate consumers who lost money as the result of the failure of a regulated financial services business.
“We shall need to establish therefore whether investors in Greenfield International were advised by a regulated IFA. Greenfield International itself was not regulated.”