We are currently investigating complaints from investors about an unregulated investment involving Ethical Forestry Ltd (and various related companies) which have now gone into liquidation.
Ethical Forestry Ltd dealt with forestry rights and agreed to select land in Costa Rica to plant melina trees and provide the cropping rights of those trees to investors. The land was leased by a Costa Rican company called Ethical Forestry Plantations SA Costa Rica.
Investors entered into a 12-year contract with this entity for the cropping rights of the fast growing melina trees that were to be logged and sold as timber.
Shane Biddlecombe and Gordon Johnston of HJS Recovery were appointed joint liquidators of Ethical Forestry Ltd on 16 December 2015. As a result of the liquidation, it appears likely that clients who have invested in this company are at serious risk of losing the money invested.
However, investors do still own the cropping rights obtained through the Costa Rican company Ethical Forestry Plantations SA Costa Rica. Many clients appear to have used their pension monies to invest in Ethical Forestry Ltd through a SIPP provider.
We understand that the Ethical Forestry Plantations SA Costa Rica is solvent and is currently trying to purchase the land from the liquidators of Ethical Forestry Ltd. We also understand that the Costa Rican company is a separately owned business with different directors to the one in the UK and that a large percentage of the shares in Ethical Forestry Plantations SA Costa Rica are owned by Ethical Forestry Ltd.
We now act on behalf of clients who have invested in Ethical Forestry and are investigating the role of independent financial advisors and SIPP providers in facilitating this high-risk investment in Costa Rica.
Please contact our group litigation solicitors on freephone 0800 916 9015 or contact us online if you have invested in Ethical Forestry Limited or any other unregulated investments such as Green Oil Plantations Ltd, SCS Farmland, Bacolet Bay, Chateau de la Cazine, Global Forestry Investments or Lomax Halls and are concerned that you have or are likely to suffer financial loss as a result.
Ronan Cosgrove is a group litigation and commercial services lawyer at Slater and Gordon in London.