About
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2012
In 2012 Private investors were invited to invest in Eco House Group (Brazilian property) with a promised return of 20% payable on the 12 month anniversary of their initial investment.
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2014
On 3 November 2014 Eco House suspended worldwide operations following the intervention of the Brazilian federal police who were investigating allegations of money laundering and tax evasion.
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Eco House claimed
Eco House claimed to have owned the land that would be developed but they did not own such land.
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Secure in Escrow
Saunders & Co were appointed the fund’s “administering lawyers” to provide a veneer of respectability to the scheme and added credence to the assertion that funds were secure. Secure in Escrow. The money was NOT held in escrow.
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Ponzi scheme
Eco house was therefore submitted that this set up was a classic Ponzi scheme, in that investors deposited £31.77 million with Sanders & Co, who in turn deposited the same amount to Eco House, who then returned £4.58 million to Sanders & Co, of which £4.54 million was used to pay out early investors their original investment plus 20% after 12 months.