A judge has described the findings by administrators to two Guernsey-based investment firms, which form part of the Providence group, as a ‘steaming pile of guano’.
At a hearing today, the administration managers from Deloitte for Providence Investment Funds PCC Limited and Providence Investment Management International Limited said their findings indicated more than £30m of investors’ money was still ‘outstanding.’
They alleged that it appeared ‘investors’ money was largely not invested in Brazilian factoring.
Instead, money appears to have been used to finance the wider Providence group companies’ activities around the world and to have been lent to various companies in Brazil that are controlled by Antonio Buzaneli, the founder of the Providence group.
The administrators also say there is no available cash to make repayments to investors.
The Guernsey Financial Services Commission describe these latest findings as ‘extremely concerning.’
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