Dolphin Trust: Investors lose millions – How to get your money back!

Dolphin Trust: Investors lose millions – How to get your money back!

Thousands of investors have lost their money by investing in projects run by the German Property Group (GPG), formerly known as Dolphin Trust. This investment company, based in Hanover, hit the headlines after it filed for bankruptcy in 2020. The debt is estimated to be between 1.2 and 1.5 billion euros DW reported. The founder Charles Smethurst was charged with 27 counts of fraud in spring 2024 and remains the focus of the investigation.

Investors were lured with promises of safe property values ​​and high returns, which were ultimately not fulfilled. Many of the over 70 properties held by GPG were in dire need of renovation at the time of bankruptcy or only existed on paper. A majority of the companies that GPG offered had no significant substance and the investor funds were not used in accordance with the commitments made.

Legal steps and claims for damages

The mixture of unrealistic promises and abusive financial handling has led to the Hanover regional court now investigating commercial fraud. In addition to criminal investigations, there are also legally enforceable claims for damages against intermediaries and those responsible. anwalt.de points out that affected investors should take certain steps to protect their rights. This includes securing contract documents, identifying intermediaries and hiring lawyers to examine claims. It is important to note the statute of limitations, as there is a risk of loss of rights at the end of 2025.

One of the clients invested 50,000 euros in Dolphin Capital 128. Projekt GmbH & Co. KG and only received 80% of the capital back after incorrect advice. Despite GPG's bankruptcy, investors should not lose faith that legal action is possible. Specialist lawyers are currently analyzing numerous cases to examine breaches of disclosure obligations by intermediaries.

The business model and its consequences

German Property Group was originally conceived as a safe investment opportunity for British, Irish and Asian investors. She acquired old buildings in Germany with the intention of converting them into high-quality apartments. However, company management has stopped submitting financial reports since 2015 and numerous investors reported a lack of repayments or information on their investments until May 2019. This not only led to the discovery of a suspected pyramid scheme, but also to massive financial losses for investors.

It is estimated that 2,000 Irish investors alone are affected, each of whom is owed around €200 million. At the time of bankruptcy, the value of GPG's real estate was estimated at a maximum of 150 million euros, which illustrates the company's difficulties.

The investigation is currently ongoing, including a police operation in which evidence was seized from Smethurst. These developments also shed light on the lack of oversight in the German corporate sector, as well as the role of financial advisors who promoted the company as a profitable investment. DW reports on the ongoing concerns and challenges that investors must now overcome to potentially recoup their losses.