Director banned after unlawful property scheme saw investors lose £57m

The director of two companies which operated an unauthorised property investment scheme costing investors more than £57 million has been banned from being a company director for 14 years.

Robin Forster was a director at Qualia Care Properties Ltd and Qualia Care Developments Ltd, which the High Court ruled last year ran an unlawful investment fund.

Forster, of Colwyn Bay, was handed the disqualification order at the Manchester District Registry of the High Court.

The order, which began on Monday 26 February, prevents the 42-year-old from becoming involved in the promotion, formation or management of a company, without the permission of the court.

Mike Smith, Chief Investigator at the Insolvency Service, says: “Robin Forster was the director of companies which put investor funds at risk through an unauthorised care home investment scheme.

“Forster made false and misleading statements to investors, promising them returns which were never likely to be achievable. He also transferred funds to a connected company just days before both Qualia Care Properties Ltd and Qualia Care Developments Ltd went into administration. 

“His actions fall well below the standards the Insolvency Service expects of company directors and we are pleased to have secured a disqualification order lasting until February 2038.

“Qualia Care Properties Ltd and Qualia Care Developments Ltd offered investments in care homes in the north-east of England between February 2016 and September 2020.

“Investors purchased a long-term lease on a room in a care home run by a third company, Qualia Care Ltd, and sub-let the room back to the other Qualia companies.

“The High Court ruled in favour of the Financial Conduct Authority in 2023 that it was unlawful and amounted to an unauthorised collective investment scheme.”

The court also agreed the returns promised to investors of between eight and 10per cent of the purchase price were never likely to be achievable and that Forster had made false and misleading statements to investors about the sustainability of the scheme.

Investors incurred losses of an estimated £57,834,900 through the scheme. The FCA is currently seeking recovery of the funds.

Forster also caused Qualia Care Properties Ltd and Qualia Care Developments Ltd to make three transfers totalling more than £2 million to Qualia Care Ltd, in the four days prior to the companies entering administration in September 2020.

These inter-company transactions were made at a time when Forster ought to have been aware of outstanding liabilities of at least £5.9 million due to investors. 

£1,030,289.95 was transferred from Qualia Care Developments Ltd to Qualia Care Ltd on 7 September 2020.

The following day, a further £577,500 was transferred to the same company, also from Qualia Care Developments Ltd.

Forster caused Qualia Care Properties Ltd to transfer £410,000 to Qualia Care Ltd on 10 September 2020.

One day later, both Qualia Care Properties Ltd and Qualia Care Developments Ltd entered administration.

Both companies were liquidated in the summer of 2022. Qualia Care Ltd went into administration in October 2022.