People who invested in a high risk investment scheme are reeling as shares in the scheme are now valued at £0.
Elysian Fuels was sold as an investment scheme funding renewable energy projects in the UK and US. Around £200 million was invested in the scheme which had a minimum investment of £50,000 as it was marketed as being for experienced investors only.
Unfortunately as much as £180 million of the funding is believed to have come from self-invested personal pensions.
Future Capital Partners (FCP), who sold and marketed the scheme, has now cut the value of the shares from £1 each to zero, leaving investors massively out of pocket.
Trading in Elysian Fuels shares was suspended in September 2013 and the stock was delisted in March last year.
FCP advertised in July 2013 as "targeting post-tax returns of ten times the initial investment over eight years".
FCP’s director, Tim Levy, said in a statement that Elysian shares "there were no guarantees of returns and it was understood by all investors that, in order to enjoy any return, the underlying ethanol assets would have to generate returns of at least £100m".
Apparently due diligence was carried out and clients were required to confirm their “sophisticated investor status” prior to investing. As an unlisted security Elysian Fuels did require “additional vetting” but ultimately was treated the same as any standard investment purchase.
FCP direct Tim Levy blames the share value of £0 on a very low value sale of a renewable energy plant in the US. In a statement he said, “Last year the Directors were content that the prospects of returns from the ethanol assets justified the £1 per share value of the LLP interest - but they now believe that, based on the facts now available, it should be fully written down.”
Levy denies that investors have lost all their money as he believes the UK project may still be viable. But, like any investment scheme, there are no guarantees.
If you have been affected by the Elysian Fuels investment scheme please get in touch with Slater and Gordon’s specialist litigation team. Call us on freephone 0800 916 9015 or contact us online and we will call you back.