79th Group: Inside The Major UK Investment Scandal

The name ‘79th Group’ captured attention across the United Kingdom throughout 2025, becoming one of the most searched and discussed headlines in financial news. Billed until recently as a credible family-owned asset manager, the company marketed ambitious investment opportunities in property, wealth management, and natural resources. As of August 2025, it finds itself at the centre of one of the UK’s most dramatic investment scandals, impacting thousands of everyday investors.

Origins and Rise

Founded in 2020 and headquartered in Southport, the 79th Group built its brand on the promise of robust returns from real estate and natural resource assets. Run by David Webster and his sons, Jake and Curtis, the business positioned itself as a trusted family operation, with a board boasting banking and compliance experience. Award-winning marketing and bold claims of unique access to lucrative assets attracted significant interest, not only from British investors but also those as far afield as the Middle East and Canada.

The group’s flagship investment products took the form of loan notes, a type of mini-bond. Investors were told their funds would help develop everything from property to aviation, with attractive fixed interest rates sometimes topping 12% per year for contributions starting at £10,000. As a result, the 79th Group reportedly raised over £200 million, involving approximately 3,700 investors.

Dramatic Collapse and Fraud Investigations

The firm’s story took a drastic turn in early 2025, when the City of London Police launched a sweeping investigation into suspected widespread fraud. In March, four individuals associated with the company were arrested following raids in which large sums of cash, luxury watches, and jewellery were seized. While these individuals were released on bail, the police continue to appeal for more investors to come forward as potential victims.

At the heart of the investigation lies concern that the 79th Group was operating as a sophisticated Ponzi scheme. Insolvency reports released since April 2025 indicate that investor funds were pooled in central group accounts without the ring-fencing needed to protect each client’s capital. Some group subsidiaries, such as 79th Luxury Living Six Ltd, were found to own no real assets despite collecting tens of millions from investors, raising fears that much of the money went towards operating costs, commissions, and possibly other undisclosed destinations.

Administration and Investor Fallout

By April 2025, the 79th Group had entered formal administration, with several subsidiaries following suit. The company publicly announced a halt to all new investments and enacted a moratorium on payments to existing clients. It argued that these measures were necessary to restructure the business and explore ways to “deliver on its obligations.” The announcement, however, did little to reassure those affected. Widespread redundancies followed, especially among departments that oversaw the now-defunct loan note products.

For investors, the reality hit hard. Some 1,400 individuals reportedly ploughed between £50 million and £70 million into products from just one of the group’s entities, only to find their money was almost entirely unprotected. Initial asset tracing suggests that most funds have vanished, and experts warn that it could take years to identify what, if anything, can be reclaimed.

Industry and Regulatory Response

The regulatory and industry backlash has been swift. The use of loan notes and mini-bonds, sometimes marketed aggressively to investors with promises of high returns, has faced renewed scrutiny. Financial solicitors, including specialist teams at several UK firms, are actively gathering claims on behalf of those who lost money, exploring avenues for legal action and possible compensation for financial mis-selling.

NatWest, the high street bank that hosted 79th Group’s accounts, also finds itself under the microscope. Questions linger over how the bank monitored the inflow and transfer of investment funds and whether warning signs were missed. NatWest stated that combating fraud remains a “top priority” but declined to comment further on the ongoing investigation.

Lessons and Warnings for UK Investors

The 79th Group saga serves as a stark reminder for UK investors. Industry experts stress the importance of due diligence when considering investment opportunities, especially those offering above-average fixed returns. Regulators urge consumers to seek professional advice and to question the security of their capital with any non-standard, non-regulated products.

Legal advisors have issued strong calls for affected investors to act quickly—joining class actions, investigating the role of their introducers, or seeking redress for potential regulatory failings. Many warn that, while police investigations may result in criminal prosecutions, they rarely secure compensation for investors. As such, time is crucial for those hoping to recover even a portion of their money.

Conclusion

As the 79th Group’s administration and legal proceedings drag on, the company’s website remains offline and its phones unanswered. Administrators continue to trace assets and seek solutions for those left behind, but the process may extend for months or even years. For many investors, substantial losses are likely to be permanent.

This collapse will likely have a lasting impact on the regulation of similar financial products. The rise and fall of the 79th Group is now a case study for the risks associated with private investment schemes promising extraordinary rewards. It has sent ripples through the UK’s financial services sector and is expected to influence the way authorities, banks, and the wider public approach such opportunities in future. The importance of transparency, security, and regulatory oversight in the investment market has never been clearer. For those navigating the world of high-yield investments, the story of the 79th Group stands as a timely—and sobering—lesson.