Daily news, documents and intelligence about Offshore Financial Centers and those who conduct business in them that you will not find anywhere else.
Author Photograph
David MarchantEditor at OffshoreAlert
Full Bio

A message to investors of Axiom Legal Financing Fund

November 06, 2012 by David Marchant 4 Comments
The bad news is you have been defrauded of your investment in Axiom Legal Financing Fund. Your money has been embezzled by the Fund's controlling person, Timothy Schools, and other insiders. The sooner you accept this, the sooner you can start taking steps to recover some of your losses. The worst thing you can do is hold out any hope that the Fund is going to get back on its feet. Trust me, that's not going to happen. It's inevitable that the Fund will go into liquidation.

The good news is that the level of incompetence, unprofessionalism and negligence by the Fund's advisers and those entrusted with looking after your interests is possibly the worst I have seen in 27 years as a journalist. This means that Axiom's liquidators, when they are eventually appointed, will almost certainly recover millions of dollars in damages from them or their insurers in lawsuits that I expect to be slam-dunks. Unfortunately, the liquidators and their own professional advisers will keep much of this as fees and costs. The eventual liquidation dividend to investors is likely to be much less than your losses. I'm sorry but that's just the nature of the beast and the price you must pay for investing in an overtly-ridiculous scheme that had red flags plastered all over it.

You, as investors, have no direct claims against the Fund's professional advisers. It is up to the liquidators to bring such actions on your behalf. If you do sue them, your actions will be stayed in deference to lawsuits filed by the liquidators. So don't waste your time, effort, or money pursuing this course of action.

You can, however, sue financial advisers and others who directly induced you to invest in this fraudulent scheme. Frankly, they are sitting ducks for successful litigation. Time is of the essence, though, since there will be a statute of limitations on filing a claim. For more details on suing a financial adviser for recommending a fraudulent investment product that was exposed by OffshoreAlert, I recommend that you read this informative blog from 2005 by Bevans law firm in England.

Good luck and learn this lesson: Before you invest in another scheme, do some credible due diligence.

eMail Alerts  

Sign-Up for eMail Alerts

 Average 3 out of 5

OffshoreAlert encourages lively, open debate and asks that you refrain from profanity, hate speech, personal comments and remarks that are off point. Thank you for taking the time to offer your thoughts.



  • Jim McCarthy
    By Jim McCarthyon Saturday, November 10, 2012 12:16:38 PM

    Dear David So are you saying that the whole of the fund has been embezzled by Schools et al?

      • David Marchant

        Much or most of investors' funds appear to have been embezzled. This was an extremely crude fraud.

      • Sucker investor
        By Sucker investoron Sunday, November 25, 2012 3:05:56 AM

        Thank you for for your interesting and information article David. I'm ashamed to say that I have invested a great deal of money in this scheme. I will sue my financial advisor. I'm not sure if this is the same Bevans but you might want to look into this:

        • Adam Maher
          By Adam Maheron Friday, July 19, 2013 10:53:25 AM

          In many cases, investors will have been poorly advised to buy into this fund. I am taking action against financial advisors for professional negligence for failing to undertake proper due diligence against the Axiom Legal financing fund. In most cases, the advisor will have adequate professional indemnity insurance to cover any losses incurred. I am a partner at Myerson solicitors. Please telephone me should you wish to discuss the circumstances of your investment, on 0161 941 4000

          • pcmendes
            By pcmendeson Sunday, June 1, 2014 1:59:40 AM

            Do you have at least a rough idea of when the liquidation might be over and what the dividend payout might be?

            We hunt for red flags in high-value, cross-border finance by monitoring offshore and onshore courts, regulatory actions, offering documents, and other sources - and email you the results.

            View Recent Digests