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10 August 2020 | Comment | Article by Neil Stockdale

Dolphin Capital files for Bankruptcy


The latest investors update shows that Dolphin Capital, now trading as the German Property Group, has placed a number of its companies into insolvency in Germany.

Investors in Dolphin Capital loan notes have been left in a position of uncertainty for a number of months whilst returns were not paid out and the financial position of the companies remained unclear. It now appears that the intended returns will not be paid and instead, investors will be treated as creditors of the companies during the insolvency process meaning the return of their funds will not be guaranteed.

In brief, the Dolphin Capital investment involved investors providing a loan which would be used for the purchase and re-development of listed buildings in Germany. It was intended that the loan would incur interest and eventually generate an income as a return on the investment.

This was a high-risk and non-standard investment which was unsuitable for many unsophisticated and inexperienced investors. It was sold as an investment with guaranteed returns in excess of 13% which was secured against the properties to be developed.

Unfortunately, many investors were poorly advised in respect of the suitability of the investment and are now left out of pocket having lost their pension funds or cash funds to this scheme.

If you were advised to invest in Dolphin Capital by a financial advisor regulated by the Financial Conduct Authority, you may be able to complain about the advice you received. You may also have a claim if you invested in Dolphin Capital through a Self Invested Personal Pension (‘SIPP’).

The Financial Mis-selling team at Hugh James has a depth of experience in claims against concerning unsuitable investments. If you invested in Dolphin Capital, contact us today for a free, no-obligation discussion to determine if we can help you to recover compensation.

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Author bio

Neil is an elected partner on the firm’s board of management. He is also head of the firm’s financial mis-selling team, specialising in handling claims for financial mis-selling relating to pension mis-selling, timeshare purchase, annuities, mortgages and insurance.

Disclaimer: The information on the Hugh James website is for general information only and reflects the position at the date of publication. It does not constitute legal advice and should not be treated as such. If you would like to ensure the commentary reflects current legislation, case law or best practice, please contact the blog author.

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