Investors gear up for Park First legal battle
Investors in an alleged £230m parking space scam are due to meet this week to plot a legal battle against the founders of the collapsed firm in a bid to seize control over its administration.
According to a report in The Sunday Times, investors in the unregulated scheme, many of who are pensioners, are meeting this week to plan their legal fight.
Park First sold spaces at Gatwick and Glasgow airport to investors, promising rich returns.
The collapse of the scheme has affected more than 4,500 investors.
Read more: London parking spaces sold for over £200,000
Park First persuaded investors to buy parking spaces, with a promise of an eight per cent annual return, which would rise to 12 per cent over six years.
Investors were told the parking spaces could be easily sold.
Agents were paid 30 per cent commission to market the spaces, with commission hitting £69m.
Spaces were sold on a leasehold basis for £25,000 at Gatwick and £20,000 at Glasgow.
Park First was set up by entrepreneur Toby Whittaker, who is the managing director of parent company Group First Global.
Park First was not able to deliver the returns it promised, and in 2017 offered investors the option of selling back the parking space and receiving a refund, or participating in another scheme that would pay two per cent a year.
Read more: The parking app that’s going to change how you drive
Park First collapsed after it was unable to meet the surge in refund requests.
Investors are meeting next week to try and drum up support for a change of administrators.
They want to replace Smith & Williamson with insolvency firms Dow Schofield Watts and Quantuma.
Investors have also criticised City watchdog the Financial Conduct Authority (FCA) which stopped the company from marketing the scheme in 2016, but allowed it to continue to operate after it was restructured.
The FCA is taking legal action against Whittaker, director John Slater and Park First to try and compel them to return money to investors.
An FCA spokesperson said: “This was a scheme that wasn’t regulated by the FCA. We stepped in, stopping the firm from taking further money and are now using all our power, including legal action against the individuals controlling the scheme, to get proper compensation for customers.”
Group First Global was contacted for comment.