The Financial Services Compensation Scheme (FSCS) has paid out a total of £4.9 million for claims against a Norwich IFA firm run by two brothers who recently pleaded guilty to fraud.
Ross and Alan Taylor, who ran Taylor & Taylor Associates alongside a connected investment scheme, Vantage Investment Group, pleaded guilty earlier this month to defrauding over 200 clients of £17 million.
A data request by New Model Adviser® revealed that the lifeboat fund has paid out for a total of 176 complaints against the firm. Of these, 102 related to advice on Sipp products, 28 related to unregulated collective investment schemes, and 23 related to investment bonds.
The Taylor brothers were each charged with seven counts of fraud in 2016, following an investigation from the Eastern Region Special Operations Unit (ERSOU). They were found to have fraudulently produced client records, misrepresented documents and convinced elderly clients to grant access to pension funds.
Those funds were invested without clients' knowledge into the unregulated Vantage Investment Group fund, of which the brothers were the directors and shareholders, between 2008 and 2015.
According to police, the Taylors used the money gleaned from the scam to fund expensive lifestyles, which included cars and a private boat.