The High Court has ruled in favour of the Financial Conduct Authority (FCA) against an illegal care home investment scheme.

Robin Forster was the director of Qualia Care Properties Ltd and Qualia Care Developments Ltd which took £57 million from 380 investors in care homes run by Qualia Care Limited between 2016 and 2020.

Investors were promised returns of between 8-10% the long-term leases costing between £50,000 and £75,000 for a care home room which was then sub-let back to the Qualia companies.

The Court agreed with the FCA the scheme was unlawful and amounted to an unauthorised Collective Investment Scheme.

Steve Smart, joint executive director of enforcement and market oversight at the FCA, said: “Mr Forster didn’t just put investors’ funds at risk by selling investments in an unauthorised scheme that was not sustainable, he also put at risk the wellbeing of residents of the care homes, many of whom were vulnerable. I would like to thank the Care Quality Commission for their assistance during our investigation and their work ensuring the residents of these care homes continued to receive the care they need.

“The Qualia scheme offered unrealistic returns based on its unsustainable business model and operated like a Ponzi scheme. Mr Forster’s reckless behaviour put investors at serious risk, and we will now seek compensation for them.”

The FCA’s action is also against the main sales agent for the scheme, Fortem Global Limited, which was owned by Forster and Richard Tasker.

The Qualia companies are now in administration and Fortem Global is in liquidation.

The FCA will ask the Court to determine the sums the defendants should be required to pay back to investors.

Prior to the Qualia scheme, Forster was involved with MBI companies which operated a similar investment scheme to Qualia. The FCA has issued a claim in the High Court arguing the MBI scheme was also a Collective Investment Scheme which was being operated unlawfully without FCA authorisation.

The FCA is to seek a similar Restitution Order in relation to the MBI scheme.