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L&Q launches investigation into fraudulent bond as website removed
Large London association L&Q has launched an investigation into an elaborate scam which saw fraudsters pose as the organisation to get investors to put thousands into a phoney retail bond.
L&Q said it is now investigating the origins of the bond after Inside Housing uncovered the scam.
Individuals were encouraged to invest a minimum of £10,000 into the fake bond, with the scammers having produced a website and a brochure for investors.
The website is no longer in operation and when Inside Housing contacted the email address linked to the account, a response said: “The domain name system reported that the recipient’s domain does not exist.”
Fraudsters had sent emails to individuals offering 12.9% returns on investment over two years. When made aware of the emails and website, L&Q confirmed they were fraudulent and issued a stock market notice to investors.
The association also reported the website to Action Fraud. The Financial Conduct Authority, which can investigate scams that involve financial services, said it could not confirm or deny whether it is looking into the fraud.
Posing as investors, Inside Housing made contact with the fraudsters behind the scheme and a spokesperson said: “We really try and make this as simple as possible for the client, so your £15,000 is absolutely fine.”
They added that the investment guaranteed a return of 12.9% and that it “will not fluctuate under any market conditions”.
The spokesperson also sent emails with documents attached demanding a virtual signature and two forms of identification.
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