FCA Succeeds in Court Battle Against Director Over Illegal Care Home Investment Scheme

The High Court has ruled in favour of the Financial Conduct Authority (FCA) against Robin Forster, the director of Qualia Care Properties Ltd and Qualia Care Developments Ltd who took £57 million from 380 investors in an illegal care home investment scheme. The companies had been offering long-term leases for between £50,000 and £75,000 with returns promised of 8 – 10% of the purchase price over the period of sublease. The Court agreed with the FCA that the scheme was unlawful as it amounted to an unauthorised Collective Investment Scheme and that Mr Forster had made false and misleading statements to investors about the sustainability of the scheme. The FCA will now ask the Court to determine the sums that the defendants should be required to pay back to investors. Additionally, the action is also against Fortem Global Limited, which was owned by Mr Forster and Richard Tasker and which acted as the main sales agent for the scheme. Finally, the FCA has issued a claim in the High Court arguing that the MBI scheme - operated by Mr Forster prior to the Qualia scheme - was also a Collective Investment Scheme which was being operated unlawfully without FCA authorisation. The FCA now seeks a similar Restitution Order in relation to the MBI scheme.