Claims Can Be Lodged For Banners Broker Loss

 

Those who put money in the collapsed Banners Broker investment scheme have been given the opportunity to stake a claim for their losses.

The joint liquidators of Banners Brokers International Ltd in the Isle of Man have also taken steps to inform investors about the ongoing investigation into the company’s affairs.

A website has been established where information documents can be downloaded and proofs of claim submitted.

These are to be supported with bank statements showing the initial investment and the pictures of the onscreen balance currently held in Banners Broker accounts.

The move comes three months after the joint liquidators, Paul Appleton and Miles Andrew Benham, were appointed following concerns about the conduct of the suspected pyramid scheme.

Immediately after the liquidation of the Isle of Man company, and the seizure of up to £6m (€7.5m) in assets, the Canadian-based owners of the operation claimed the bulk of their resources had already been moved to a sister company in Belize.

The cash in the bank in the Isle of Man was described as a rainy day fund which was not core to their business.

A statement on the advisory website said the joint liquidators were still investigating where the rest of the company’s money is held.

“The joint liquidators are in the process of investigating all aspects of the company in liquidation, including the extent of its operations, both locally and in other jurisdictions,” it said.

However the liquidators said it could be some time before any funds can be distributed.

“Given the multi-jurisdictional nature of the case, the joint liquidators will not be in a position to make a distribution [if at all] in the short term,” it said.

A media consultant acting for the liquidators, Paul McCarthy, said at the time of the initial liquidation application that there was close to 1,000 creditors who lost money.

However, he said that, since the information website had gone live, there had been a “tidal wave” of contacts from people who had invested in Banners Broker.

Mr McCarthy added that many of these are from Ireland.

He said the proof of claim form is available on the website which he said was straightforward to fill out and people could do themselves.

He said the website would also be updating people with information on the status of the liquidation.

Mr McCarthy is part of an English consultancy firm and is not the Paul McCarthy who ran the Irish operations of Banners Broker from an office on Dublin Hill, Cork.

The liquidators have said their will be no charge for anybody making a claim.

 

Originally reported by: Irish Examiner