DEALINGS WITH OAKTREE

We were recommended to Oaktree Financial Services and their MD Stephen Higham by a friend Chris Godkin who also had considerable investments with them in 1995.

We were about to sell four houses near London and move to France. So a good safe home for our life’s savings and investment monies was essential.

At the time Higham said that we could easily obtain 8% return on our monies and suggested an offshore bond that was tax beneficial. We would be able to live comfortably on the interest generated and his 1% commission was more than reasonable.

The proceeds of the sale of three of our properties were therefore paid to the three recommended offshore insurance companies. In total £527,950.00 was sent directly to Scottish Equitable, Royal SunAlliance and The Old Mutual.

Higham immediately paid us back some of the commission paid to him by the insurance companies further endearing him to us.

We now know that from day one he created a confidence charade to gain our trust in his management of our funds. Presenting an impressive office block premises saying it was all paid for and the company had substantial assets.

Annual valuations were doctored from the first year and we never saw valuations from the insurance companies as Higham requested they were always sent to him. Then creatively enhanced by Higham and retyped by his secretary on Oaktree stationary to be sent on to us.

Over the years it was shown to us that our initial investment was safe and holding its value even though we were taking 8% annually to live on. Little did we know that our drawings were depleting the bonds and with management, dealing charges as well as the markets fluctuations had almost vanished after seven years.

He did adjust the returns as the markets were affected by world events even showing a considerable loss after 9/11. But sent several letters indicating that our particular investments had recovered well.

With the very reasonable valuations and returns presented to us by Higham we gave Oaktree Financial Services more cash as and when we disposed of more assets. Even my mother’s savings and proceeds of her home went into the Oaktree pot. Altogether another £262,820.00 in cash was paid by cheque to Oaktree Financial Services.

We assume this had been the plan of Higham's right from the outset and over the seven years we trusted him with our entire worldly assets of over £750,000. Even entertaining him at our home and recommending others to him. Our assets have now been reduced to a mere £52,000.

Higham has had many years to divert and hide these funds as we now know he paid our monies into a second Oaktree bank account. And from there could access the funds at will. Also issuing fake Treasury Bonds to give clients assurances of good investments.

Obviously this deception could not be sustained indefinitely. And when it became evident that misappropriation of client’s funds had been discovered, another convenient charade of feigned suicide was acted out. Miraculously Higham survived along with the suicide note admitting wrongdoing.

After admitting to the police and the FSA, who had licensed this previously convicted felon to handle client’s investments he is now in hiding. His criminal record of similar illegal dealings with client’s monies only gave him a suspended sentence in 1989.

The PIA was fully aware of Higham’s previous misdemeanors and had him marked in their records as "High risk and requiring close attention". This was stated as fact at the first creditors meeting!

Another convenient move is the announcement that his wife is divorcing him. I would presume that this will distance even more funds away from the legal processes of recovery.

More amazing facts come to light as his brother and other directors of Oaktree admit to being unaware of Stephan Higham’s criminal activities. So only the one “fall guy” will take the blame. But with his previous record of deception I cannot believe that his brother and wife were not aware over many years that client’s monies were being fraudulently used and stolen.

All in all Stephen Higham has over many years managed to plunder clients money by gaining their confidence. Some of these funds are now deposited out of reach of the authorities and legal minds trying to trace them. Some 30 clients have been affected to a greater or lesser degree. Some like us having lost virtually their entire life’s savings at a time when recovery and being able to start again at retirement age is a daunting prospect.

How can he be allowed to profit from these illegal actions and the ruination of so many other lives?

We found out about the collapse of Oaktree while touring in America and had to immediately sell our vehicles at a great loss to enable us to return to our home in France. Here we had all the paperwork and documents relating to our dealings with Higham.

We are now reduced to an impoverished state unable to enjoy our hard earned retirement. As we have absolutely no income from any source including the pension’s service, our life is on hold. We have to sell what valuables and possessions we have just to sustain life and pay bills.

Now when we should be able to take it easy we have to offer B&B in our home. We cannot afford to be ill as a visit to the doctor and medication cost money here in France. 2006

    Ray