Investors in the Enterprise House development in Leicester were represented exclusively by Wilsons Solicitors (‘Wilsons’), based in and around the Leeds area. Strathearn Insurance Services Limited (‘Strathearn’), an insurance broker/intermediary, recommended the use of the deposit bond as security for the investor deposits. The bond itself was provided by Northern and Western Insurance Company (‘NWIC’), based on the Caribbean Island of Nevis.
Following the financial collapse of the developer, the collapse of NWIC and the subsequent sale of Enterprise House, investors have been left high and dry. Our investigations have subsequently revealed that NWIC was unrated, not UK regulated and operating an underwriting portfolio which was severely lacking in diversity and which exposed the firm to excessive risks.
Our clients believe that Wilsons failed to act independently and were negligent in not fully investigating or advising them about the viability of NWIC as bond provider, the complex contract paperwork and the distribution and use of the deposit funds.
There is also compelling evidence to suggest that Strathearn breached the FSA (as the FCA then was) code in recommending the NWIC bond to lay investors and negligently misled investors as to the nature and suitability of the deposit bond within promotional materials.
We act for a significant number of clients who are pursuing both Wilson and Strathearn for return of their lost deposits, interest and loss of opportunity and Court proceedings have now been issued in the Chancery Division of the High Court against both firms. We do however remain interested in speaking to other investors who have been affected by these issues.
A number of options are being considered for the proposed management of the case including a Group Litigation Order or other form of collective case management. Please see our FAQ section for further details.