Mr B received some ‘returns’ in the early days of his investment, but after the firm was investigated for fraud and entered administration in 2025, he had ‘lost all hope’ of ever seeing his money again.
Mr B was a customer with the Bank of Scotland. Over 4 years, between June 2020 to October 2024, he invested more than £500,000 into 79th Group. He made his payments by cheque rather than through more common online bank transfer. Mr B did receive some money back, which he believed was from investment returns, but he was still out of pocket by more than £360,000 when he approached TLW Solicitors for legal advice.
What was the 79th Group?
+ −The 79th Group made headline news when its directors were arrested, and the firm was investigated for suspected fraud in early 2025. The City of London Police said the Southport-based firm was “believed to be offering loan notes to investors with a high interest return over a fixed period”.
As part of their investigation, the City of London Police set up a webpage for investors to log their details, including the circumstances under which they were initially contacted about the 79th Group investment, how much they had paid in, whether they had received any money back, and how much was still outstanding.
The firm entered administration shortly afterwards, leaving investors uncertain where to turn for help.
What was the issue with the 79th Group loan notes investment?
+ −Loan notes (also called mini bonds) are a type of debt agreement upon which the issuer promises to repay the principal amount plus interest at a specified time. They are often used to raise capital for specific business and investment projects. The success of the project is crucial to the business’s ability to repay the loan and, in turn, the promised returns.
Although companies issuing mini-bonds or loan notes are not generally regulated by the City watchdog, the Financial Conduct Authority (FCA), advice or financial promotions connected to these investments may still raise regulatory issues. In some cases, investors may also have grounds to pursue a claim through their bank, depending on how the payments were made and the circumstances of the transaction.
APP fraud claims and industry delays
+ −Authorised Push Payment (APP) fraud typically involves the Faster Payment System (FPS), as transactions are almost instantaneous. Using an online or telephone banking app means the account holder ‘authorises’ each payment, effectively allowing the transaction to happen. Believing the transaction is genuine, they answer the bank’s security questions and confirm they are happy to pay.
APP fraud cases may be the result of:
- Impersonation scams where someone pretends to be a trusted individual such as a solicitor, adviser or business
- Purchase scams, where you buy products that don’t exist or are never sent
- Romance scams, which target lonely or vulnerable people through online dating apps and result in demands for money or gift cards
- Pension or investment scams, such as the 79th Group’s mini-bond investment
In August 2025, the UK Finance, which represents the financial industry, announced it would “ringfence this case from usual processing due to its highly complex nature”.
‘Usual processing’ refers to the APP Fraud Reimbursement Scheme that was introduced in October 2024. The new rules came into force to better protect customers from fraud and to reimburse them more quickly if they fall victim to a push-payment scam.
As a result of a police investigation, the 79th Group’s collapse, and the decision to pause claims handling, frustrated investors could not access their funds and had no option but to wait.
FCA intervention gets claims moving again
+ −The FCA contacted UK banks in October 2025, telling them not to sit on 79th Group claims and to progress them. The FCA was clear that a police investigation was not a valid reason for banks to avoid reaching claims decisions. Similarly, even though it was a complex case, banks still had to assess cases individually and within regulatory time limits. This was great news for investors, and claims began to get settled.
Mr B’s claim success
+ −APP fraud usually involves online and telephone banking transactions using the Faster Payment System (FPS), which means payments are almost instant. However, what was unusual in Mr B’s case was that he made his payments by cheque, but the Bank of Scotland still investigated it as APP Fraud.
Mr B originally invested over £500,000 into the 79th Group. He received some ‘returns’ during the investment period, which were deducted from the total before his case was settled.
After instructing the team at TLW Solicitors, Mr B was awarded a total of £366,750 by his bank, meaning he was fully compensated for his net loss.
Reflecting on his experience of the claims process with TLW Solicitors, Mr B said:
“When I contacted TLW Solicitors in May, I had already lost all hope that I would see my money again.
After speaking to TLW, I was happy to instruct them to deal with my claim. I was kept fully informed as my claim progressed.
When I received the news that I was being fully compensated, I was over the moon. Receiving this compensation makes life much easier – I would definitely rate the team at TLW Solicitors as 5 star – I would give them 10 stars if I could – they were excellent and getting this money back means the world to me.”
TLW Solicitors’ view
+ −Sarah Spruce, Legal Director at TLW Solicitors, said:
“We are delighted for Mr B and with the outcome of his case. Some cases are harder fought than others, but in the end, the Bank of Scotland was quick to investigate and reach its decision.
Cheque payments are not typical in investment fraud cases, but this case serves to remind us that fraud can take many forms, and any request for payment, however familiar or old-fashioned it may seem, should be treated with caution.
We are working with many 79th Group investors to help recover their losses. I would therefore encourage anyone who thinks that they or a loved one may have lost out financially, to get in touch with my team for a no-obligation and confidential discussion and explore the available options.”
Investment mis-selling claims specialists
+ −The specialist team at TLW Solicitors has many years of experience successfully handling claims for mis-sold or fraudulent investments, even when initial complaints have been rejected.
We understand the time limits to be followed, the information needed and the claims and appeals processes. The team will also address any complex legal arguments and defences the bank may raise. The combination of our experienced team and digital case management systems means that we proactively pursue your claim and aim to get the best possible results.
If you or someone close to you has lost money through the 79th Group or another suspected investment scam, please get in touch with our specialist team for a confidential, no-obligation conversation.
You can call us on 0191 293 1500, email info@tlwsolicitors.co.uk or complete the Callback form below.
It is important to get advice as soon as possible, as strict time limits can apply.
Minimum case values apply.
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