The ECHO has looked at how a multi-million pound company has led to thousands of people wondering where their money has disappeared to
Mike Hanrahan claims he invested a quarter of a million pounds into the Southport-based company
A man says he fears losing his £250,000 savings, meaning he is unable to retire, as he and more than 3,000 people await answers after a police probe has been launched into a Merseyside-based investment firm that has been branded a “Ponzi scheme” by investors. Mike Hanrahan claims he invested in the company after it was recommended to him, seeing it as a no brainer as they offered 15-18% back on the money he invested.
Speaking months after his decision to invest, he is now left questioning whether he will see any of the money back. The ECHO has covered the ongoing investigation into the company in detail since the City of London Police announced a probe into the global business. The group told the ECHO it “categorically denies any wrongdoing.”
The investigation prompted four arrests in February this year, with close to 20 companies under the 79th Group being placed into administration off the back of the probe. One of three administrators in charge of handling the administration of the companies said The Seventy Ninth Group Limited is the holding company for a large and complex group of unregulated businesses which together describes itself as an asset manager.
How The 79th Group operated
The 79th Group operated using a web of companies that would feed money into two main holding companies. These were The 79th GRP Client Limited, founded in 2005, and The 79th GRP Limited, formed in 2020 and taking over the role of the older company.
Police confirmed the group, based on Wight Moss Way in Southport, operated in real estate, “claiming to specialise in the acquisition, management and development of lucrative assets”. The company also offers investment opportunities selling loan notes secured against properties.
GRP Limited was formed to bring all the Group entities under one company, according to administrators, and throughout the “lifespan” of the company they are aware of five main companies used for fundraising for investors. According to a document published by the joint administrators, those companies were:
79th Luxury Living Five Ltd79th Commercial Three Ltd79th Luxury Living Six Ltd79th Luxury Living Four Ltd79th Resources Three Limited, based in GibraltarThe 79th Group offices on Wight Moss Way in Southport
Using these companies, The 79th Group raised around £150m from investors from across the UK, Europe, Asia and Middle East. As of April 23, 2025, the total investment value railed from investors stood at £150m with a redemption value of around £203m owed to 3,700 investors.
The ECHO has spoken to several people since the police investigation was launched, who said they had invested sums of money. They then rolled over the investment to remain invested in the company after they were told they had earned a figure of profit from their loan note.
This was referenced in the administrators’ documents, stating a “large proportion” of investors would roll the value of their loan notes over.
Initial findings showed that the loan note companies used by The 79th Group umbrella did not ringfence funds and the administrators are still in the process of tracing where the funds have been “utilised”. Indications show that the Group “may not have applied investor funds in accordance with each of the loan note entities stated investment project”, raising questions over whether the money invested was used for its designated purpose.
‘Financial pressure’ after police announce investigation
The administrators said the Group contacted Quantuma Advisory on April 10 to undertake a review of its short term cashflow after encountering “increased financial pressure and liquidity constraints”. This is said to have come off the back of the announcement of a police investigation from the City of London Police on February 28.
Due to “adverse press”, the Group, according to administrators, were unable to raise further investment. This resulted in immediate redundancies, with staff telling the ECHO how some were told by the Group they had lost their jobs at the beginning of April.
Cash was seized by police during raids earlier this year(Image: City of London Police)
Dad-of-two Kevin Broughton was employed as a graphic designer in the firm’s marketing department for 11 months before he was told on April 4 he would be made redundant. He opted to work his notice and, after being told he would be paid at the end of the month, is now concerned he will never receive the £3,076 he is entitled to.
Kevin said he has been forced to sell his car due to lack of income.
He is just one of dozens who say they are concerned they will never receive money owed to them by the company for work they have completed, with the company employing 100 people – 70 of whom were laid off.
Four arrests were made earlier this year(Image: City of London Police)
Since the administration, administrators have received £1.2 million from several accounts linked to The 79th GRP Limited, including namesake offshore accounts in the USA and Canada. An additional £300,000 is expected to be claimed by the administrators.
High-profile advisors
Two people who frequently came up during the ECHO’s conversations with investors were former HMRC director of specialist investigations Andy Cole CBE and former chair of Nuclear Waste Services Adriènne Kelbie, who both worked as non-executive advisors to the Group.
There is no suggestion either were involved in any possible wrongdoing. A number of investors said they felt their roles as advisors were reassuring to them in choosing to invest.
Mr Cole retired from HMRC in 2015 according to a BDaily article published in 2020, with the website reporting him as saying: “I am delighted to be joining the 79th Group board at a time of exciting development for the business – particularly the gold mining initiative. I am looking forward to working closely with the team to ensure the highest level of regulatory advice and guidance.”
The ECHO was unable to trace contact details for Mr Cole, with The Times reporting how he declined to answer questions from the outlet, but said his role was a “short-term appointment from October 2020 to October 2021 as a non-executive director”.
Mr Cole told The Times: “Following my resignation, I subsequently provided occasional tax advice as an independent consultant under a separate engagement … related to structural re-organisational plans working with other UK and overseas professional advisers.
“At no time did I promote any financial products marketed by 79th Group nor did I advise any investors, third-party clients or professional advisers … relating to those products the City of London Police is currently investigating.”
Ms Kelbie, formerly chairwoman of Nuclear Waste Services, and former chief executive of the Office for Nuclear Regulation, said she advised the company in a personal capacity during the years 2021/22 and 2022/23.
During 2023/24, Ms Kelbie said she provided limited services through her company and advised on employee engagement, ESG and ISO standards, as well as recording podcasts and participating in two events.
Like Mr Cole, there is no indication or suggestion that Ms Kelbie was involved in any wrongdoing. She told the ECHO: “Given this matter is subject to ongoing investigation, it would not be appropriate for me to comment at this time, other than to say that I am shocked and saddened to learn about the reported wrongdoing that is alleged to have taken place within the group.
“My sympathy lies with those who have suffered as a result of this. I knew nothing about this, but will do all I can to support the investigation.”
‘I feel like I’m on a roundabout I can’t get off’
One man who has felt the impact of this is Mike Hanrahan, who claims he invested a quarter of a million pounds into the Southport-based company.
Mike, who owns the national cleaning company Maid2Clean, said: “I can’t sleep and I feel like I’m on a roundabout I can’t get off. I’m not the only one, I have set up a WhatsApp group with more than 600 people in who have all suffered as a result of this.
“From a mental health perspective, you relive it every day, seeing how people have lost out. It eats into my daily life. I now spend part of my working hours dealing with the administrators, banks, my MP, all of whom I’m engaged quite heavily with.
“I’d like to know where my quarter of a million pounds has gone. I mean, it had only been in the system for a period of several weeks before administrators were called in.”
61-year-old Mike was planning on handing the business down to his three children, with the businessman from Crewe, Cheshire, looking to take early retirement.
Businessman Mike Hanrahan from Crewe
He said: “But guess what? The plans now have to change and I can’t hand over my business. I want to give it to my children, my daughter is pregnant and she had planned to be take on the business but she can’t now.
“I’m totally devastated, to be honest, because the kids already made plans and arrangements. I know s*** happens but I didn’t expect this to happen.”
The 79th Group is unregulated by the Financial Conduct Authority (FCA), with The Times further reporting it had been reported by an investor last year.
The ECHO reported earlier this year how plans for a £250m holiday park in Anglesey had been thrown into doubt following the company’s administration. In January this year, the Merseyside company was announced as the new owners of the consented development at Penrhos Coastal Park near Holyhead. Almost 500 luxury lodges have been earmarked for the 200-acre site, North Wales Live has previously reported.
Anglesey Council’s chief executive, Dylan J. Williams, told the ECHO: “The ownership and future of the Penrhos site remain unclear, so it would be inappropriate to comment further at this time.”
Penrhos Coastal Park on Anglesey(Image: North Wales Live)
In packages issued to potential investors seen by the ECHO, the Group shows off how it makes thousands, sometimes millions, of pounds profit on projects which last anywhere from a matter of days to months. Their pitch was often telling people how they would buy under-valued properties to make money on.
City of London Police said the investigation remains ongoing, with no updates.
A spokesperson for The Seventy Ninth Group told the ECHO in a statement in March: “The Seventy Ninth Group categorically denies any wrongdoing following claims recently made public by the City of London police.
“Since the events of last week, we have been working diligently with our legal advisers to address the claims made as part of the investigation, while also providing information to business partners and other stakeholders.
“The company has also appointed independent forensic accountants to conduct a comprehensive review of the business. The Seventy Ninth Group remains committed to servicing its clients in the UK and across the globe.”
