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  • Peer to Peer Lending

    Glenn Armstrong and his (investors) millions

    Whilst going through my inbox deleting old emails, I have come across lots of mailshots from my old mucka Glenn, asking for funds for deals he has lined up. I've had a little tot up all the loan requests solicited by his emails to me between July 2010 and August 2013 and it amounts to: £3,718,500 !!!!!!!!!!!!

    Nearly 4 million sobs requested by an unregulated individual, thank god he's the 'number one property brain in Britain' and can turn these sows ears into silk purses. It made me very sad, I have missed out on some crackin' deals, when the nurse bought my medication, she could see i was down, I told her i have missed out on a 'right tickle'. Now admittedly shes a bright girl and to my surprise she said -

    1) No evidence of client account
    2) G and A Properties not registered with a Property Ombudsman Scheme
    3) Its all a bit murky about GA's involvement and who's names properties are being purchased in (see Teresa Rollands case).

    I was shocked, how can anyone have doubts, she stunned me again -

    What has happened to all this money?
    Where are the happy clients - apart from one who we keep hearing about.
    Where are the happy people who loaned GA money and made a good return?
    When the new FCA rules kick in next year, how is GA going to solicit further funds to keep this going? Emailing "unsophisticated" investors will no longer be an option for him.

    I felt a bit better then, I even had a thought of my own, What happens to people on the partnership programme when the funds dry up?
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    Had a phone call from 'tim' soliciting people for mentering at 6k a pop & also wanting people to invest in j.v's.
    I couldnt get my cheque book out quick enough...not !!!
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    The "Financial Conduct Authority PS 13/3 regulation" should put a stop to it from 1 Jan 2014, great explanation at Property Fortress in this flowchart PDF.

    As for the individuals whom invest significant sums without independent advice, may their unwise choices guide them to a good exit strategy. Theirs something to be said for penny pinching then theirs another for being gullible.

    Teresa is a good example of someone whom needed independent advice. Now such advice has to come from solicitors in a defensive capacity.
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    THIS PROPERTY TRIBES ACCOUNT IS NO LONGER USED.
    DO NOT SEND PRIVATE MESSAGES.

    --- MORE INFO HERE ---

    YOU CAN REACH ME AT BESPOKE FINANCE or MY TEAM AT 08009202001

    That's a really helpful flowchart Adam.

    Thanks for sharing.

    John's site looks great and is looking like a very useful resource.

    I guess Mr. Armstrong will have to find alternative ways to fund his JV and Partnership Programme mentees deals by the end of the year?

    If he cannot get funding for their deals, I wonder what his refund policy is?
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    With him employing Phil Martins ex Legal Exec, I am sure she would deal with any refunds, ohh hang on, did anyone actually get a refund from Martin?

    What an impressive CV that must be!
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    Well nobody has popped up to tell us how they got rich quick from these investments.
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    So how does it work then Frank?

    Glenn sends an email out to all his subscribers.... saying that 'we're buying a cracking little number which completes next week - but we need to borrow some money'

    The unsophisticated recipient takes the bait (1% pcm) and sends off an email....

    There is a small exchange of 'designed to be unenforceable' contracts.... none of which I assume have Glenn's actual name on?

    Then tens of thousands of pounds just wafts its way over to *moderator content removed* Offices in Milton Keynes....

    Then what?

    Who did the unsophisticated lender actually lend the money to?

    What is the money secured against?

    What is the exit? - what happens if it all goes tits up?

    Is this all a clue as to why I have heard from yet another rather pissed off punter who is owed £8,000+ interest by Glenn for a deal that 'didn't perform'

    I can only conclude from everything that Glenn is insolvent and illiquid or very close...(I know, you can't be insolvent and liquid.... but you can be illiquid yet solvent)...

    I would hazard a guess that Glenn is planning an exit strategy - not so much for *moderator content removed*

    and that's not to mention the earlier JV's that 'went wrong' due to the credit crunch....

    In fact, if you include those (just for the fun of it) Glenn is clearly ...*moderator content removed*. with more than half a million in outstanding claims plus god knows how much debt he's rolling over from month to month under his PP - that's maybe £250k on top of that? - so we could be talking £750,000 underwater....

    And what of HMRC? - I'm sure he must be needing to put a little aside to cover those pesky taxes?

    And staff......

    But if he can cram in some more JV's paying £6k upfront and a profit share... he only needs to work with 100 or so (assuming that they are all profitable of course?)

    But he has to do that before January because after that he'll need to find a way to raise capital... legally!

    And then there's the hire bill for the cars...

    And all of Amanda's houses.... each & every one bought using 'creative finance' *moderator content removed*

    I don't suppose that interest rates will go up much for a little while yet... but when they do you can bet that all the cash will vanish and the keys will be handed in for around 200 BTL properties in the greater MK area

    Mmmm? He's making so much money that he's too busy to write Teresa a cheque, too forgetful to write the courts a cheque (or is that multiple cheques? - I'm not sure if he would need to draw a separate cheque for each of the current cases?

    And he's having so much fun that it slipped his mind to pay out £8,000 to one chap... £9,000 to another.... and undisclosed amounts to others who *moderator content removed* for the team and accepted a lesser amount than they were owed...

    And others who feel too embarrassed to come forward publicly - but I want to make it clear that there is no shame in coming out as having been *moderator content removed*

    Still haven't received a solicitors letter from his latest legal advisors - *moderator content removed*

    Apologies for any trivial errors above - if someone cares to correct me on the detail I will gladly edit my post....
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    So how does it work then Frank? THATS WHAT I WAS HOPING A HAPPY INVESTOR WOULD DROP BY AND TELL

    Glenn sends an email out to all his subscribers.... saying that 'we're buying a cracking little number which completes next week - but we need to borrow some money' YEP. GOD KNOWS WHY VENTURE CAPITAL ISNT USED>>>>OHH HANG ON

    The unsophisticated recipient takes the bait (1% pcm) and sends off an email....

    There is a small exchange of 'designed to be unenforceable' contracts.... none of which I assume have Glenn's actual name on? YEP

    Then tens of thousands of pounds just wafts its way over to *moderator content removed* Offices in Milton Keynes....

    Then what?

    Who did the unsophisticated lender actually lend the money to? PASS

    What is the money secured against? A PICKLED EGG AND PACKET OF CRISPS

    What is the exit? - what happens if it all goes tits up? WHAT DO YOU MEAN, IF?

    Is this all a clue as to why I have heard from yet another rather pissed off punter who is owed £8,000+ interest by Glenn for a deal that 'didn't perform' I THINK ITS MORE THAN A CLUE

    I can only conclude from everything that Glenn is insolvent and illiquid or very close...(I know, you can't be insolvent and liquid.... but you can be illiquid yet solvent)...

    I would hazard a guess that Glenn is planning an exit strategy - not so much for *moderator content removed*

    and that's not to mention the earlier JV's that 'went wrong' due to the credit crunch....

    In fact, if you include those (just for the fun of it) Glenn is clearly ...*moderator content removed*. with more than half a million in outstanding claims plus god knows how much debt he's rolling over from month to month under his PP - that's maybe £250k on top of that? - so we could be talking £750,000 underwater....

    And what of HMRC? - I'm sure he must be needing to put a little aside to cover those pesky taxes? VERY GOOD POINT

    And staff......

    But if he can cram in some more JV's paying £6k upfront and a profit share... he only needs to work with 100 or so (assuming that they are all profitable of course?)

    But he has to do that before January because after that he'll need to find a way to raise capital... legally!

    And then there's the hire bill for the cars...

    And all of Amanda's houses.... each & every one bought using 'creative finance' *moderator content removed*

    I don't suppose that interest rates will go up much for a little while yet... but when they do you can bet that all the cash will vanish and the keys will be handed in for around 200 BTL properties in the greater MK area

    Mmmm? He's making so much money that he's too busy to write Teresa a cheque, too forgetful to write the courts a cheque (or is that multiple cheques? - I'm not sure if he would need to draw a separate cheque for each of the current cases?

    And he's having so much fun that it slipped his mind to pay out £8,000 to one chap... £9,000 to another.... and undisclosed amounts to others who *moderator content removed* for the team and accepted a lesser amount than they were owed...

    And others who feel too embarrassed to come forward publicly - but I want to make it clear that there is no shame in coming out as having been *moderator content removed* [/b]
    Still haven't received a solicitors letter from his latest legal advisors - *moderator content removed*

    Apologies for any trivial errors above - if someone cares to correct me on the detail I will gladly edit my post....
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    Surely even FCA PS 13/3 won't put a stop to this in January as he's requesting loans, not investments.

    If I've read the flowchart correctly on Property Fortress, he'll still be able to ask for loans on unsolicited emails.

    A small point in the scheme of things I realise, just pointing out that you may be incorrect in the assumptions that the fresh waves of cash will dry up in January.
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    (09-11-2013 03:41 PM)daniel_booth Wrote:  Surely even FCA PS 13/3 won't put a stop to this in January as he's requesting loans, not investments.

    If I've read the flowchart correctly on Property Fortress, he'll still be able to ask for loans on unsolicited emails.

    A small point in the scheme of things I realise, just pointing out that you may be incorrect in the assumptions that the fresh waves of cash will dry up in January.


    Listening to John Corey on the FCA 13/3 webinar last night it seems clear to me that GA is most likely *moderator content removed*

    - the new rules apply to any deal that will be live when the rules become law in January... so any deals struck now that don't complete & sell by then are technically covered (i.e. required to be compliant) and we all know that Glenn cannot be compliant - not least because very few of his clients meet the criteria that the FCA have laid out.

    The soliciting for loans in itself isn't covered by FCA 13/3 - but that in itself is a moot point because the way G&A set up the contracts they probably aren't FCA compliant (which would make them in breach of FCA 13/3)

    However... the biggest issue with FCA 13/3 is this; -

    Soliciting 'deals' to clients on the same basis that the current PP / JV thing is set up will be in clear breach of FCA 13/3 - Because I would hazard a guess that very few (if any) of the clients / JV partners / Mugs (choose whatever term is most appropriate) will meet the criteria for 'sophisticated investor'

    Let's have a look shall we? -

    Is the JV partner High net worth? - Answers on a postcard
    (but I think not - given that Glenn seeks *moderator content removed*

    Is the JV partner a sophisticated investor? (excuse me for a moment... I spat my coffee out just thinking about the answer to that one! lol)
    - 'Sophisticated' doesn't mean 'experienced' nor does it mean 'flash 'arry driving a rental Ferrari'
    The FCA definition for sophisticated means 'professional' strictly in the financial services industry or associated legal profession... that excludes pretty much every single client Glenn has ever worked with because *moderator content removed*

    Now... this is where it becomes interesting... ALL of Glenn's little friends who kiss his butt on Facebook groups etc.. are rewarded with doggie treats every time they perform a trick for Glenn... (by trick, I mean 'introduce a new friend for Glenn to JV with... and by 'doggie biscuits' I mean a little cash reward)

    FCA 13/3 will make this 100% illegal... Any of Glenns little friends who solicit for and subsequently introduce clients to Glenn will be BREAKING THE LAW...

    Also... Glenn loves to send out those emails... lend me money or JV with me or give me your money & I'll teach you all the *moderator content removed*... kind of emails...

    Glenn - a word in your ear! - Stop sending those emails... THEY ARE NOW ILLEGAL
    Ok, they're not illegal per se... but actually.. they are... because any deal / jv / contract that is entered into from today.. is likely to be related to a project that will still be live in January 2014 (unless they can be bought, refurbed and sold by January? - which is possible but not that likely)

    So... before you send out any more emails Glenn... you need to qualify each and every single person on your mailing list... EVERY SINGLE ONE... and until you do, you cannot solicit for business.

    There is a way around it - water down your content to make the emails compliant...(when I say 'water down' I mean drown them *moderator content removed*)
    And then, when you get a reply to your watered down email... You CANNOT communicate any further with the respondent about your 'deal' until you have qualified them under the regulations set out in FCA 13/3

    And if they don't tick all the boxes - and that means you must see sight of documentary evidence of their status... then you cannot talk to them any further about your deals!

    So basically the business model is looking somewhat screwed!

    *moderator content removed*

    *moderator content removed*

    Good riddance I say.... by the time 13/3 has worked its way through the existing *moderator content removed* in the broader property industry people like Teresa Rolland can at least be sure that those who remain will be FCA compliant and not be East End barrow-boys set on pillaging your life savings.

    Of course FCA 13/3 isn't just about Glenn Armstrong or G&A property or any of the linked companies that Glenn has been setting up recently but it is about 100s of other so called businesses out there who have taken literally £billions from naïve and innocent punters over the past decade or two.
    (The list is shamefully long)

    And the *moderator content removed* will still happen but if we're vigilant and keep passing details to the appropriate authorities we can limit the damage.
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    The flowchart whilst good is a dumb indicator, it comes down to the wording. It was a while since I read but but perhaps John Corey is best to answer that question.

    Is a loan not an investment?
    They are investing/loaning funds in Glenn's schemes in order for a variable return.

    I am also certain in order to offer a loan the person giving the funds need a CCL licence - unless loaning to a LTD company (sole traders, partnerships etc.. will still require licence).
    A licence costs £575 if you are a sole trader, and £1,215 for a limited company.
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    THIS PROPERTY TRIBES ACCOUNT IS NO LONGER USED.
    DO NOT SEND PRIVATE MESSAGES.

    --- MORE INFO HERE ---

    YOU CAN REACH ME AT BESPOKE FINANCE or MY TEAM AT 08009202001