The Court of Appeal has upheld a ruling against Alexandra Associates (UK) Ltd, trading as Avacade Future Solutions (AA), and Craig and Lee Lummis in a case brought by the Financial Conduct Authority.

The Court of Appeal upheld the High Court's previous findings that the defendants "engaged in arranging and promoting investments without FCA authorisation and made false and misleading statements to investors which induced them to transfer their pensions into self-invested personal pensions (SIPPs) and then into alternative investments such as HotPods (office space available for rent), tree plantations and Brazilian property developments", the FCA has said.

The FCA’s executive director of enforcement and market oversight Mark Steward said: “The Court of Appeal decision vindicates the original decision and will help vindicate the rights of more than 2,000 investors who have lost pension money through the defendants’ conduct in leading them into these toxic and high risk investments.”

More than 2,000 people transferred roughly £91.8m from their pensions into SIPPs, with about £68m of that being invested in products promoted by Avacade and AA, while approximately £905,000 was invested into a fixed rate bond relating to a Brazilian property development. Many of the underlying investments have failed or are in liquidation, according to the FCA.

From these investments, Avacade and AA earned commissions of around £10.8m.

In August last year, the High Court ordered the defendants to pay a total of £10,715,000 in restitution to members of the public who were induced to transfer their pensions into SIPPs. 

The FCA said the Court of Appeal's decision opens the way for the order to be enforced by the FCA.