HGEC capital LTD
August 7, 2024
What happened with HGEC capital LTD?
HGEC Capital Ltd was an investment scheme which claimed to invest in petroleum and natural gas extraction in Texas, USA.
However, according to reports, an investigation by the Insolvency Service found it was little more than a Ponzi scheme.
From its incorporation in March 2018 until it went into administration in February 2020, this scam has resulted in reported losses of £2.8 million.
Most of the money was sent to third parties with only around £430,000 said to have been invested in the actual scheme.
The sole director of HGEC Capital Ltd was Kenneth James Campbell who allegedly paid himself hundreds of thousands of pounds.
In August 2023 The Court of Session in Edinburgh banned him from being a company director for 14 years.
HGEC capital LTD: How Ponzi scheme scams works
Scams like HGEC capital LTD are called Ponzi schemes. How they usually work is by attracting investors with promises of high returns with minimal risks.
The money that’s generated by new investors is then used to make negligible “interest payments” to existing investors.
It’s reported that HGEC capital LTD presented investors with a slick brochure. And claimed 2018’s downturn in the oil price presented an opportunity to buy and sell sites in Texas, generating high returns in 12 months.
You can read more about Investment Claims here
Can you get your money back from HGEC capital LTD?
If you have fallen victim to this scheme or any other scam, there are ways to try and recover your money:
If you paid by UK Bank Transfer
The Contingent Reimbursement Model Code (CRM) provides a way for victims of UK bank transfer scams to seek reimbursement.
If you sent the money to invest in HGEC Capital Ltd using a bank transfer from a UK bank you could get your money back providing:
- The bank is signed up to the CRM Code
- The bank transfer was made on or after 28 May 2019 from a UK Bank
If you paid using a Credit Card
You may have protection under Section 75 of the Consumer Credit Act 1974.
This law offers protection for credit card payments providing you paid more than £100 and no more than £30,000.
It can apply to situations where you have paid for products or services and the company has not delivered as promised (misrepresentation) or has broken their contract with you.
You will need to provide evidence of this.
There are no guarantees that you will be able to get your money back through these methods, but it is worth pursuing.
You can also take your case to the FOS if you don’t agree with the decision made by your bank or credit card provider.
Can Compensation Adviser help you?
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If you would like Compensation Adviser’s assistance, then let’s get started with a chat!
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