Investors get their money back after suing financial management firm

Global Capital Financial Management has been ordered to pay damages to two elderly investors after a court ruled that the company had not properly explained the risks of the investment to them. Mr Justice Mark Chetcuti found in favour of Evelyn Farrugia and her brother Fr Daniel Farrugia. In September and October 2008 the Farrugias had invested STG28,525, €57,000 and €55,000 with Global Capital on the advice of its manager Erica Caruana. The investment was made in Lifemark SA Secure Income Bonds (SIB). For the first two years following the investment, the Farrugis had regularly received a dividend or interest on the sums they had invested. But in 2010 their investment failed and they suspected that they had been sold a risky product which was not suitable for their needs. They asked the court to order GCFM, which did not contest the case, to pay them damages consisting in the sums of money they had invested. Mr Justice Chetcuti said that it resulted that Ms Farrugia had been advised by Ms Caruana to invest her money, which was the proceeds of a life insurance policy which had matured, in SIB on the basis that this was a secure investment. Ms Farrugia had told her brother about...