From Gold to Gone - Formby Family at Centre of £200 Million Investment Scandal

Formby Bubble
Nov 1
3 min read

An extraordinary financial scandal has unfolded involving the Webster family from Formby — once hailed as successful entrepreneurs behind the Southport-based investment company, the 79th Group.

A High Court has now granted a worldwide freezing order against the family’s assets as investigations continue into what administrators describe as the possible fraudulent misappropriation of around £200 million in company funds. The court also ordered full disclosure of their assets and the surrender of their passports while inquiries progress.

The rise of the 79th Group

The 79th Group, named after gold’s position on the periodic table, was promoted as a global asset-management and investment business dealing in property, mining, luxury developments and aviation. The company attracted more than 1,400 investors from across the UK, Europe, the Middle East and Asia, offering “loan notes” with promises of high, fixed returns — some between 12% and 15%.

The Websters, led by father David and his sons Curtis and Jake, fronted lavish promotional events in locations such as Dubai, Marbella, India and Switzerland, boasting of major acquisitions and international expansion. They claimed to be developing luxury holiday resorts in Wales and Scotland, and spoke of ambitious mining ventures across West Africa and North America.

The shocking truth

When the group collapsed in April 2025, administrators discovered that the glamorous image was far from reality. Reports have confirmed that no investor funds were ever actually used to purchase or develop any of the sites advertised. Instead, money raised was spent on running costs and commission payments to brokers and introducers.

One report revealed that the company responsible for the supposed luxury developments, 79th Luxury Living Six Ltd, did not own any property assets at all, and there was no evidence of any feasible business plan or strategy that could have produced the promised returns.

The description fits what is commonly known as a Ponzi-style scheme, where money from new investors is used to pay earlier investors or company expenses until the funds eventually run out.

The investigation

The collapse triggered a major investigation by the City of London Police, who specialise in national fraud cases, alongside the Financial Conduct Authority and several appointed administrators including Grant Thornton, Kroll, Quantuma and CG&Co.

It has since emerged that warnings about the 79th Group’s activities had been raised months before its collapse, but because the company’s investment products were unregulated “mini-bonds”, they fell outside the FCA’s direct remit.

The fallout

Administrators have described the 79th Group as a “complex web” of around 55 companies, many of which are now being examined to locate any recoverable funds for investors. The Webster family denies any criminal wrongdoing and claims that a police raid on their offices earlier in 2025 and subsequent loss of banking facilities caused the business to fail.

For many investors, the losses are devastating. Money intended for property developments and gold investments has simply vanished, leaving families and individuals facing huge financial hardship.

A local connection

For the Formby community, the story has been particularly shocking. The Webster family, well-known locally, built a public image of success and wealth — yet behind the scenes, their empire was collapsing under the weight of empty promises and missing money.

The 79th Group’s downfall stands as a stark reminder of how easily glossy marketing, high-profile events, and big claims can mask financial deception. As investigations continue, hundreds of victims across the country — and closer to home — are left hoping for justice and the recovery of at least some of what they’ve lost.

Helplines & Contacts:

City of London Police – You can report your case to them via the Major Incident Public Portal (MIPP) for this investigation. REPORT
National Fraud Helpline (operated by a specialist law firm) – If you’ve lost money and want a no-win, no-fee legal recovery route, you can contact them at 0333 003 3218. CONTACT