Three major law firms unite to seek justice for Blackmore Bond Investors owed millions

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Three top UK law firms have teamed up to take action against an insurance broker after investors were denied compensation by an offshore insurance company following the collapse of property development company, Blackmore Bond PLC.

Manchester-based, Barings Law, is partnering with London firm, Humphries Kerstetter, and Edinburgh-based MBM Commercial to launch a professional negligence class action against the broker Lonsdale Insurance Brokers Limited

Blackmore was set up in 2016 and raised money to fund residential property development by issuing ‘minibonds’ to investors, promising interest rates of up to approximately 10%.

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The bonds were guaranteed by a Capital Guarantee Scheme held with ION Insurance Limited brokered by Lonsdale. It is alleged that Lonsdale acted negligently in its role as broker by appointing an unsuitable insurer and missing red flags.

James Russell, Partner at Humphries KerstetterJames Russell, Partner at Humphries Kerstetter
James Russell, Partner at Humphries Kerstetter

According to a parliamentary report, in total Blackmore Bond PLC built 11 separate developments using £46 million from approximately 2800 investors.

Those who invested were mostly regular people that used money they worked hard to save and needed to fund their families’ futures.

Blackmore stopped making payments to bondholders around late 2019 and by April 2020 it had gone into administration resulting in investors suffering from significant losses.

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The trio of firms will be acting on behalf of series one bondholders of Blackmore, whose investments collectively total approximately £18.7 million.

Craig Cooper, Managing Director at Manchester-based Barings LawCraig Cooper, Managing Director at Manchester-based Barings Law
Craig Cooper, Managing Director at Manchester-based Barings Law

Barings Law and Humphries Kerstetter have currently signed over 400 clients who invested as series one bondholders.

But the firms believe there will be others affected so they are currently looking to sign up more bondholders to join the action.

Craig Cooper, Managing Director of Barings Law, said:

“We are thrilled to be working alongside Humphries Kerstetter and MBM Commercial to help bring justice to the series one bondholders who put their trust in Blackmore Bond PLC.

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“A lot of hardworking people have lost money that they need to be able to care for elderly relatives, pension funds, school fees or their life savings.

“We are hopeful that alongside these two great law firms, we will be able to help these people recover the money that was lost when the company was liquidated.”

James Russell, Partner at Humphries Kerstetter, said:

“We are delighted to be collaborating with Barings Law and MBM Commercial in this proposed action on behalf of a group of Series One Bondholders of Blackmore Bond PLC.

“These people have suffered significant losses following Blackmore’s collapse with little hope of recovery to date, despite being told their investments were guaranteed.

“Our firms are committed to access to justice and have formulated an innovative strategy to seek redress for the bondholders and it is hoped that a positive outcome can be achieved.”

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