Blue Force Property firm collapse could cost soldiers millions

Blue Force Property firm collapse could cost soldiers millions

10:22 AM, 16th February 2011, About 13 years ago 1

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The Blue Force Group – including Blue Force Property and Blue Force Services have collapsed holding cash for soldiers that could run in to millions.  Many of the soldiers with cash on deposit with the firms could lose up to £11,000 each.

The full extent of the financial collapse is unknown – but it is thought 350 soldiers with an average £4,000 each on deposit are involved.  This could mean they have lost up to £14 million.

The firms were run from offices rented from the Ministry of Defence at Colchester, Essex – a large garrison town.

Soldiers started having concerns about the firm last year when payments and statements of account were delayed.

A week or so ago, they started receiving letters informing them that the firms were in liquidation.

A support group, BlueOnBlueForces has appeared online at offering help and support to soldiers with financial problems arising from the collapse.

So far, 87 soldiers owned £380,000 have signed up to the site, even though the Ministry of Defence is concerned that few will receive any money back and has confirmed the government will not take responsibility for any reimbursements.

Most servicemen registering online are with the Army, although some from the RAF and a few ex-servicemen have also signed up.

The web site claims Blue Force was set up ‘at the request of senior staff officers to help Armed Forces personnel get on the property ladder’.

Blue Force seems to have provided mortgage advice, sourced property for soldiers and managed lettings while the soldiers were overseas.

A creditors and shareholders meeting is scheduled by liquidators B&C associates, of Mill Hill, London, for March 7.

BlueOnBlueForces is recommending anyone who has lost money should take over management of their properties while making sure mortgages are paid and any rents go in to their own accounts.

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Mark Alexander - Founder of Property118

12:31 PM, 22nd February 2011, About 13 years ago

It just goes to show that investors need to do their own 'due diligence' regardless of who the deal packaer is, the percieved credibility of the deal packager, and what they promise/offer. Either that, or if people haven't got the time or skill sets to commission their own due diligence, they should commission independent 'due diligence', especially if buying a packaged investment.

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