Recent years have seen a huge surge in pension scams, particularly those that trick targets into investing in unregulated products which have a high fail rate. Lomax Halls is one example.
Introducers
Often, these schemes involve unregulated introducers. They convince the targets to transfer their hard-earned pension. This is then moved to SIPP pension provider. The introducers earn a huge commission from this.
Introducers often make initial contact with targets via cold calling or turning up on a person’s doorstep. They don’t always have an easy job in persuading individuals to move their money from a safe pension into another scheme.
However, over the years, these salesmen have become experts in their craft. They employ all manner of tips and tricks in order to convince clients to move their money.
From the high-quality promotional materials used to the promises of setting up one’s family for life, the transfers to flexible Self Invested Personal Pensions (SIPPs) can sound like a great idea.
Drawing on the feel-good factor
Of these high risk, unregulated products, the schemes most successfully pushed were those with a humanising aspect too. Whether it be replanting rainforests, offering good pay to workers or helping to look after children in care, it becomes a lot easier to sell the product when you are able to make the target feel good about themselves, whilst making the world a better place in the process.
In the case of Lomax Student Halls, the introducers and salesman really played up the feel-good factor. Drawing on memories of fun times at university, targets were offered the chance to create new, top rate accommodation for students, and get rich whilst doing so.
Swindling people out of their pension
Lomax Residential was certainly short lived. Incorporated in Manchester in 2016, the company was dissolved less that 24 months later. The company was run by two individuals, Christine Ann Adamson and Paul Kinsella, whom have also served as directors for 50 other companies between them.
Nevertheless, that short time period was long enough to swindle plenty of innocent victims out of their pensions. Like any other unregulated, unorthodox product, the investments were without protection for clients from the Financial Conduct Authority (FCA) or Financial Ombudsman Service (FOS). Unfortunately, it wasn’t long before investors started reporting missed payments from the properties located in Stoke.
Concerns over Lomax Halls and Dolphin Loans
Pension-life.com, a website looking out for potential scams, issued an extremely concerning post in June 2018. Many concerned commenters noted how Lomax appeared to be a scam before shares were sold and the company went bankrupt.
If you have been talked into investing in Lomax Student Halls, get in touch. Our pension experts can offer a free consultation.