Scams in overseas farm, land or property deals

Some firms offer investment deals in agricultural land, or overseas property, or crop schemes where you are offered a plot in a plantation scheme where the harvests in the form of agricultural commodities determine your returns. These harvests can be bio fuels, teak trees, paulownia etc. The returns offered in such schemes are in the range of 15 to 25 per cent and it is normally claimed that risk in such investment is very low.

The term of investment in such plantation or farming projects can be up to 5 years and the earning from the plot and crops sold on your behalf is given to the owner of the land.

The price of each acre plot is excessively low and the investors may own many acres on investment.

The firm contacts the buyer through untraditional mechanisms such as seminars, exhibitions, emails, and they use aggressive marketing to attract more potent client. They may adopt high pressure techniques and diverse sale methods to promote their plans. They mostly claim they do not need to get FCA authorisation as they are not offering CIS.

How to prevent such deals?

Such investments   in crops, forestry, plantations and land are not backed by FCA, and one cannot seek compensation for the loss of money in such deals through authorities.

The firms offering such deals may not have access of FOS and FSCS, in case, the money is completely lost.

Even the legalities of such deals are very complex as it involves regulations of two countries, and the terms and conditions, may or may not be categorized as CIS.

The loopholes of such deals are – you do not have access to your property and cannot go anytime to look for the plot or the crops. The schemes involve investment pooling where the operators may manage the scheme completely by themselves or give it to local operators.  

The case of such investment deals can be referred to Trading Standards   or BEIS or the legal authorities.

What if invested?

Firstly, one should not feel hassled to invest in such schemes. Seek financial advice to invest and make sure the firm is authorized by the government. Check government organization which can represent as advisors and reduce risk of loss.

In case, you have invested and are unable to get back the money, contact consumer helpline or report the matter to the authorities through online or offline methods. Most investments in overseas agricultural land and farms are not under FCA, and complaints under such schemes cannot be managed through the FCA compensation schemes.

If the sellers’ calls for future investment or for follow-ups where they claim to get you the money back or offer a lucrative Exit plan after a small payment, inform authorities immediately.