Your investment company is bankrupt — but that does not mean your money is permanently lost.
What happens?
In a bankruptcy, a receiver (curator) is appointed to inventory the remaining assets of the company (the estate) and distribute them among the creditors. Unfortunately, in fraudulent investment companies, the estate is often found to be empty or completely insufficient. The money is, after all, already gone — siphoned off abroad, spent on excessive costs, or disappeared into the pockets of the directors.
Your position as an investor
Investors are generally unsecured creditors (concurrent creditors) — they are only paid out after preferential creditors (Tax Authorities, employees) have received their share. With empty estates, nothing is left for unsecured creditors. This is exactly what happened with the bankruptcy of Goodwood Investments.
Directors’ liability as an alternative
The bankruptcy of the company is not the end of the road. The directors who are responsible for the unlawful acts can be held personally liable with their private assets. Through a mass claim, the claim is not directed at the empty company, but at the individuals who made the money disappear. This is exactly what BFRG does.
