The Financial Services Compensation Scheme (FSCS) has paid out more than £3 million in relation to defunct advisory firm, Bentley-Leek Financial Management (BLFM).
The FSCS had declared Bentley-Leek in default in April, resulting in 262 claims over losses.
The firm faced action from all corners of the regulatory pack, including an investigation by the Insolvency Service.
The FSCS finally declared the firm in default after an investigation into its liabilities revealed a host of financial difficulties and defective investment advice.
In October, the directors of BLFM were even struck with a Financial Conduct Authority ban and a combined fine of £885,000 – accused of misleading clients over the risk of their investments.
The Surrey-based firm also ran a £47 million property vehicle called Bentley-Leek Properties, which suffered a similar fate to its advisory partner.
According to reports, Mark Bentley-Leek and Mustafa Dervish, the directors of the entire project, advised 300 clients into investing £35 million through Bentley-Leek Properties, both in the UK and round the world.
The FSCS has reportedly made offers on 70 of the 262 claims submitted to the service, and decisions made on 87 others.
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