Guernsey investment fund: Four arrested on suspicion of fraud

Friday 12 May 2017

Four men have been arrested on suspicion of fraud as part of an investigation into the collapse of Guernsey-based Providence Investment Fund, which led to the loss of some Jersey's investors savings.

The four men, who haven't been named, were arrested "...on suspicion of fraud by abuse of position and providing false or misleading, or recklessly providing information relating to the protection of investors." They have since been released on bail as enquiries continue.

The Providence Fund and its manager, Providence Investment Management International Limited, were put into administration in August 2016 upon request of the Guernsey Financial Services Commission. After all the directors from both companies, who had suspended the fund at the end of July, resigned, Philip Bowers, Andrew Isham and Alex Adam of Deloitte LLP were appointed as joint liquidators.

The two entities were affiliated to US-based Providence Financial Investments, which was the subject of investigations from the US Securities and Exchange Commission and filed for bankruptcy in July 2016. 

A criminal investigation, led by Guernsey's Economic Crime Division - a joint Guernsey Police and Guernsey Border Agency unit- was launched in October 2016.

Another investigation was launched by the Jersey Financial Services Commission as local financial adviser Lumiere Wealth had been selling Providence Investment Funds to Jersey residents.