PRIVATE investors in Derbyshire have lost tens of thousands of pounds after falling prey to a gold-leasing scam.
Derby law firm Smith Partnership is acting for victims of a London-based company responsible for the financial sleight of hand.
Those duped were told that a lump sum investment would allow large blue-chip organisations to buy gold and that investors would receive a return of between seven and 15% in just six months.
The company accused of masterminding the crime is under investigation but Smith Partnership reports that independent financial advisers were also involved in selling the product, convincing clients to invest their savings and pension lump sums.
Alison Neate, partner at Smith Partnership, said: "It is shocking that people have lost their life savings and had their financial security put in jeopardy through the scam.
"Cold-calling by the scammers is one thing which we would all hope to say we wouldn't be taken in by.
"But where an investment is recommended and personally endorsed by someone's financial adviser, it is easy to see how people can fall victim to these fraudsters.
"The police inquiry will take a long time with no prospect of a recovery of all of the money people have lost.
"The financial advisers appear to have a lot to answer for and may be held responsible for meeting the losses.
"They may or may not have known that the scheme was a scam, but the promises of returns were literally too good to be true."
