Lloyds Bank refuses to compensate victims of alleged £160m Ponzi scheme: 'Can't consider it a scam!'
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TL;DR
- Lloyds Banking Group is refusing to compensate victims of the alleged £160 million Godwin Capital Ponzi scheme.
- The bank maintains that the investment was 'legitimate' and cannot be considered a scam.
- Insolvency practitioners describe the operation as a Ponzi scheme, where new investors' funds are used to pay earlier investors.
- Legal proceedings have been initiated against Godwin Capital's directors for alleged mismanagement and fraudulent trading.
- The directors' assets have been frozen as part of a £155 million claim.
- Godwin Capital operated as a 'loan notes' investment business before collapsing in 2025, causing significant losses.
- Investors are expected to recoup only 5p for every pound invested.
- Lloyds was the receiving bank, and promoters allegedly used this relationship to foster a false sense of security.
- Approximately £35 million was channeled to third-party promoters, believed to be undisclosed commissions.
- Promoters used incentives like supercar tours in Italy to attract investors.
- Lloyds states that consumer protection rules for push payment fraud do not apply to 'legitimate investments'.
- The bank claims there is no evidence that the money was not invested as intended.