"The biggest source of investment for the Privilege Wealth Group today broke the news to its investors that it is massively insolvent due to fraud and mismanagement.
In a letter to its investors, Gibraltar-domiciled Privilege Wealth One Limited Partnership disclosed that the British arm of the group that owes it $38 million - Privilege Wealth Plc - has defaulted on its debt, gone into administration, and will eventually go into liquidation. The administrators are Stephen Katz, of David Rubin & Partners, and John Kelmanson, of Kelmanson Insolvency Solutions.
The $38 million owed to PW One LP is in addition to what PW Plc owes to Luxembourg-domiciled Helix Securitisation Fund, which OffshoreAlert understands invested more than $7 million in the scheme, meaning the Privilege Wealth Group's total insolvency is likely to exceed $45 million.
Today's letter to investors by Gibraltar-domiciled Privilege Wealth Management Ltd., as general partner of PW One LP, was unsigned but the author described themselves as "Managing Director" of PWML and a "Past Director" of PW Plc, which indicates that it is either Andrew Sweeney, 50, or Mark Munnelly, 33.
In the letter, PW One LP investors are asked to support a "restructuring proposal" that will "give investors the chance to recoup all of their capital over a 3, 4 or 5-year time horizon". The proposal involves PW One LP novating its claims against the Plc "to a newly informed US based LLP" that will receive any funds paid out by PW Plc and either "re-invest those funds into fresh US assets" or "distribute those funds to existing investors".
Given that, as OffshoreAlert previously disclosed, Privilege Wealth Group was operated as a fraud from the outset, the proposal appears to be an attempt to, at best, string investors along and, at worst, continue the fraud by asking them at a later date to invest more money."
-Cited from Offshorealert
These scammers are targeting Asian investors. Anafin Capital has promoted for Privilege Wealth in HK and raised more than 10 Million USD for the scam .