HBFS Wealth Management, an IFA operation based to the north of London specialising in offshore wrappers , is under police investigation over multi-million pound fraud allegations.
Freddy David, managing director of HBFS, based on Borehamwood, Hertfordshire, has been arrested by City of London Police on suspicion of fraud and money laundering. His wife Hannah David, who is a former Tory parliamentary candidate and is national director of the Conservative Policy Forum, is a 25 percent shareholder in the firm.
The Financial Conduct Authority, announcing that a 49-year-old man from Borehamwood had been arrested, said, “HBFS’s customers are advised to check the status of any investments made through HBFS and, if they have any concerns, to contact City of London Police.”
On its website, HBFS is clear that, among its varied services, it is a specialist in legitimate tax avoidance.
”Put off the taxman (with the taxman’s blessing),” it says, declaring it specialises in offshore wrappers, “where we are market leaders. Offshore wrappers are an excellent tax-planning vehicle for medium to long term investments and have a number of intrinsic benefits.”
HBSF declined to talk about latest developments at the firm, beyond confirming at one stage, "We will be cooperating fully with the FCA investigation into this matter. We have assured our clients that all money is completely secure.”
Its website carries the message, “Please note that HBFS is not accepting business from new customers at this time.”
This follows action by the FCA to restrict the company, closing it to new money and preventing it from advertising services.
Some allegations circulating centre up to £10 million in a high interest account, although a relatively few clients are said to be affected.