Custom House Capital Review – Is Investing in Custom House Capital Safe?
Custom House Capital was a Dublin-based investment firm founded in 1997. The firm operated in the midst of Ireland’s economic boom, managing over €1.2 billion in assets on behalf of over 2,000 clients, including high-net-worth individuals and high-profile individuals. Initially seen as a reputable wealth management company, it eventually collapsed under the weight of fraud and regulatory breaches. In this Custom House Capital review, we will explore the temporary rise and then fall of the firm, the impact that it had on investors, and subsequent legal actions that took place against the firm and the individuals involved.
Company Name – Custom House Capital Limited
Website – www.customhousecl.com
Address – NA
Regulatory Warning – Central Bank of Ireland (For full information visit – https://www.centralbank.ie/news/article/warning-notice-central-bank-of-ireland-issues-warning-on-unauthorised-firm-custom-house-capital-limited-(clone)-07-dec-2023)
Domain Blacklisted Status – It seems there is no direct mention of this domain being on a blacklist.
The Custom House Capital Scam
No Active Website and No Regulation
The website for Custom House Capital (www.customhousecl.com) is currently down, and the company is not regulated. For anyone thinking about making an investment, these are major warning signs. Reputable brokers need to be licensed by reputable financial authorities and have clear, functional websites.
Discovery of the Fraud
When the Central Bank of Ireland began looking into the operations of Custom House Capital in 2011, the scam became public. At least €56 million in client funds had been routinely misused by the firm. Rather than investing as instructed by the client, CHC misrepresented the truth by issuing false account statements and stealing the funds into risky European real estate transactions without permission.
Later, the company’s actions were compared to an “Irish Ponzi scheme” by the High Court of Ireland.
Legal Consequences
Legal actions concluded in 2023. Due to their involvement in the €61 million fraud, four former executives were found guilty. Harry Cassidy, the CEO, submitted a confession of guilt and was sentenced to six years and ten months in prison. The charges against Ciara Kelleher, another executive, were eventually dropped after she was the subject of two trials that ended in hung juries.
Investor Impact
More than 1,500 clients were impacted by the fallout. Many people experienced significant emotional distress, and others lost their retirement savings. In one sad example, a widow who lost their entire pension investment claimed that her husband’s death was caused by financial stress.
Compensation and Oversight Reforms
The Investor Compensation Company Limited (ICCL) received more than 2,340 compensation claims by December 2023, making it the biggest failure the ICCL has ever dealt with. The Central Bank improved its supervision after the scandal prompted a more thorough examination of Ireland’s financial laws.
Warning: Clone Firm Scam
In December 2023, a clone company called “Custom House Capital Limited” appeared, increasing the chaos. This unapproved business fraudulently implied a link to the original CHC to deceive new victims. Investors were cautioned to avoid it by the Central Bank of Ireland, which acknowledged that it had no affiliation.
How to Recover Money from Scam Brokers
If you’ve lost money to scam brokers like Custom House Capital, quick action is vital. Here’s how you can start recovering your funds:
- Gather all documentation of communications and transactions.
- Inform your local financial regulator about the scam.
- Avoid giving more money to the scammer
- Seek professional help for recovery
Scams Report specializes in helping victims recover lost funds. Their experts investigate scams, provide legal advice, and work with authorities to increase your chances of success. To begin your recovery process and receive a free case evaluation, contact us right now.
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Disclaimer: This review is based on online reports and customer complaints. Always research carefully before investing with any broker.
