Monday, 15 August 2016

A Verto Homes development has defaulted yet again on its overdue Funding Circle loans - you were warned.

Funding Circle loans to develop Towan Heights in Newquay - a development featured in the recent Crowdcube £1.6m equity raise by Verto Homes, are looking decidedly dodgy

Yet another ultimatum deadline has passed and still the loans are unpaid. As we have reported before here, investors who loaned to this development are up in arms at the way this company has stretched the truth about when payment would be made. The stretching continues.

Whilst the loans were not taken out by Verto Homes directly, Towan Heights LLP is the borrower and it was set up by the same two directors as Verto Homes and has them as members. The Towan Heights development was the main image used to sell the Verto Homes equity on the Crowdcube pitch. Verto Homes claimed in this Crowdcube pitch that they were Funding Circle's main client. 

Join the dots. 

Also, as we have said here before, we are simply amazed that Crowdcube did not think it necessary to flag up this connection and the late repayment - which was due back in May, so before the Verto Homes Crowdcube pitch went public. 

If we had not mentioned it here and pushed for it to be brought to the Crowdcube forum - no one would be any the wiser. When asked about it on the Crowdcube pitch, the VH directors brushed it aside as irrelevant - not their loan they said. Really?

There is at least one other Verto Homes' development which has FC loans and the talk amongst those who are owed money via these loans, is of legal action. It also seems highly likely, given the bad PR this has created, that VH have seen the end of their FC relationship.  Now how can that not be entirely relevant for people investing in VH?

Crowdcube investors have a few more days to decide if they really want to give their money to Verto Homes - so we hope to god they read this beforehand. Fine if you then are happy but you should really have this information in front of you.  

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