NatWest is under renewed scrutiny following allegations that the bank handled tens of millions of pounds related to a second alleged “mini bond” or loan-note investment scheme that the Financial Conduct Authority (FCA) describes as a Ponzi scheme. This development comes amid ongoing regulatory and police investigations into the bank’s connections to a similar case involving the now-collapsed 79th Group.
The FCA has taken High Court action against Hunter Jones, a group linked to HJ Collection, a property investment business that the regulator claims operated a Ponzi scheme. The FCA alleges that Hunter Jones’s fundraising activities misled investors by repaying earlier investors using funds from newer ones rather than from legitimate business profits. Court filings reveal that accounts belonging to Joe Cane, a sole practitioner accountant, received approximately £73.3 million between 2019 and 2025 on behalf of the scheme, across nearly 19,500 transactions. Of that total, the FCA believes £62.4 million came from individual investors. Repayments totaling £12.9 million were also made from Cane’s accounts, which the FCA contends were funded partially or wholly by subsequent investor money.
Hunter Jones and HJ Collection have asserted that all funds placed with Cane were held in designated client accounts at NatWest as part of documented client-money arrangements. Cane has denied involvement in the day-to-day operations of Osborne Baldwin (the owner of Hunter Jones) or HJ Collection and stated his belief that investor funds were used for property deals. He also denied any knowledge of, or participation in, a Ponzi scheme and said he was not under the impression that repayments came from new investors' money.
NatWest has maintained a policy of not commenting on specific cases but emphasized the challenges banks face in combating financial crime, highlighting the necessity of collaboration among the financial sector, regulators, law enforcement, and other stakeholders to effectively protect consumers.
The FCA’s intervention into the Hunter Jones case marks the latest in a series of regulatory actions targeting high-risk loan note schemes, which have exposed billions of pounds of investors' money to potential fraud. The regulator first flagged concerns about Osborne Baldwin back in 2016 but only initiated formal High Court proceedings last month. Along with Osborne Baldwin, the FCA has named its controlling shareholder, Reece Mennie, an entrepreneur and podcaster who also owns HJ Collection. The FCA accuses Mennie of knowingly operating a Ponzi scheme. Osborne Baldwin has denied all allegations and said it intends to contest the claims.
Separately, NatWest’s involvement with 79th Group has been under investigation after the investment business collapsed last year with estimated losses of £250 million to thousands of investors. City of London Police are probing 79th Group as a suspected widespread fraud. Reports indicate NatWest continued processing investor funds for 79th Group for several months following the FCA’s referral of the case to law enforcement and the arrest of its operators. The operators deny wrongdoing; no charges have been filed.
These cases highlight ongoing concerns within the financial sector regarding the role of banks in supporting complex investment schemes that regulatory authorities allege carry significant risk of investor harm and potential fraud.