Investors file protest against MFSP Financial Services

MFSP Financial Management Ltd has been accused of negligently investing €212,000 of clients’ funds in a company that had no capital and has been called upon to make good damages this has caused to investors.

The accusation is one of several included in a judicial protest filed this week by lawyers Stefano Filletti and Frank Testa on behalf of a group of investors who claim to have been mis-sold products by MFSP.

The investors, who include businessmen and companies claim that, in spite of their experience in business, they were misled by MFSP.

They allege that the company negligently failed to perform due diligence on the company in which it invested their monies nor on its director, Per Norgaard.

“Even a preliminary check would have revealed that the company, which is based in the British Virgin Islands had absolutely no capital, and that neither the company nor Norgaard were licenced or regulate to provide financial services in any jurisdiction,” the protest read.

Furthermore, the protest alleges that the brochure upon which MFSP based its advice on was not a legal prospectus, as required by EU law and was “downright false, fraudulent and contained false signatures”.

Amongst the allegations of misselling, which include unjust practises, aggressive sales tactics and the misleading of some investors into signing a declaration to the effect that they had invested without being advised to.

MFSP is further accused of not giving details of the legal and financial risks involved and took advantage of the investors’ inexperience in these investment markets.