The LM Investment Management (LMIM) scandal that lost investors’ lifelong fortunes has affected significant numbers of people living in Spain, especially Alicante, Almeria and Costa del Sol.
As investors try to get their money back in the wake of LMIM’s collapse, Spain’s expat victims have somewhere to turn, namely, the LM Investor Victim Centre (LMIVC).
Established in Australia in 1997, LMIM was an investment management company founded by New Zealander Peter Drake. Investors were sold a range of financial products deploying different investments in Australian residential property markets. During the 2008 global financial crisis, LMIM established a fund called the Managed Performance Fund (MPF) which alone totalled $400 million (€293 million) that was actively promoted worldwide through a network of independent financial advisors.
In March 2013, LMIM called in its administrators and the result has left investors in shock and despairing. Under allegations of mismanagement, fraud and ponzi scheme operations, LMIM was placed into liquidation in August 2013, owing investors worldwide a total of $750 million (€493 million), some of whom live in Spain.
Near 400 LMIM victims have joined forces
One of LMIVC’s representative in Spain told EuroWeekly that “we know that in Spain there are hundreds if not thousands that were caught up in this scam.” The hope is that as victims come together, the larger numbers will register a higher profile and give a greater chance of recovering unjust financial losses. Over 390 victims of LMIM have joined in the past three months, seeking justice.
The LMIVC spokesman declared, “There have been many millions of euros lost by people in Spain; I alone know 26 or 27 personally.” He spoke of victims who can’t go back to England and who have no money to live on, having lost all they invested. These victims in Spain represent just a fraction of the suffering LMIM worldwide has caused.
According to the LMIVC website, LMIM founder Drake’s passport was seized and his assets frozen in September 2013. Advisors worldwide were also implicated by failing to correctly categorise the investment due to carelessness or pure greed thanks to the high payments LMIM made to its advisors.
The issue of LMIM’s collapse may appear in Australia’s upcoming Senate inquiry. As the issue is battled in Australian courts, the fight is on for investors to recover their mismanaged investments. Interested parties should visit the LMIVC website for further contact information and helpful resources at https://sites.google.com/site/lminvestorvictimcentre/.