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The trick to getting £7,600 back after being fobbed off by Smith & Partner Limited? Let TONY HETHERINGTON investigate
Tony Hetherington is Financial Mail on Sunday’s chief investigator. He battles the reader’s corner, reveals the truth that lies behind closed doors, and wins victories for those left out of pocket. Below you can read how to contact him.
Ms. MH writes: I bought artwork from Smith & Partner Limited last August and later bought two more pieces.
I was naive and believed this was a good investment because of the strong sales pitch. Since then I have been constantly fobbed off. It never sends emails, only calls and claims to have “great news.”
As time went on I realized how much crap I’ve gotten. I have asked to resell the artwork, but I keep getting rejected.
‘Naive’: The reader bought Lion & The Witch from Smith & Partner, led by Luke Sparkes (inset)
Tony Hetherington replies: You contacted me in response to my communication on 11 December that an older investor had pumped £17,000 into limited edition prints sold by Smith & Partner after being told that his initial purchase had increased in value and would be sold within a few weeks had made a profit of £3,000. I asked the art company owner, Luke Sparkes, for details of this amazing piece of art. He didn’t answer, but I’m pleased to add that he just gave the elder investor a full refund.
One of the appeals of the scheme is that Sparkes advertises that its investors can earn “potential returns of up to 64.6 percent in just 12 months.” I questioned this, and Sparkes told me there was once such a profit, back in 2017, when the company was just getting started and before he took over. If there had been a repeat performance – or a bigger win – since then, I expect he would have been happy to highlight it.
I also questioned Sparkes about his company’s financial position. The latest accounts from Companies House show that it is in serious trouble with the tax authorities. I asked Sparkes about this twice prior to last month’s report, but he didn’t answer.
He now says the dispute has been settled, although the numbers are unclear. Similarly, the accounts show that Sparkes itself borrowed £459,038 from the company. I asked if he has since refunded this but Sparkes has not replied.
When I pressed him about your own investments, Sparkes told me, “Please note that I have shared supporting evidence with you to the fullest extent permitted by us.” He added that he would be happy to share further evidence “if he has permission to do so.”
Well, last Monday I gave Sparkes your legally binding signed power of attorney, allowing him to freely discuss your complaint, and to hand over any documents or other records relating to Smith & Partner’s dealings with you, including the sales pitch. And last Tuesday he refused.
There are many question marks about this scheme. Smith & Partner advertises its “massive expertise within the art investment market,” but won’t say who exactly has that vast expertise and where they got it from.
Prints produced by a separate company controlled by Sparkes are marketed by its telephone sales team near London’s Shard building, but investors are bound by written terms. Are these read aloud in sales calls? How can they be bound by terms they have not seen? I asked, but Sparkes offered no explanation.
Despite all this, I can report two bright spots. Sparkes admitted that his company’s advertisements contained incorrect advice about taxes due on any investors’ profits. He corrects this. And the other good news? You bought £7,651 prints, which Smith & Partner says are stored in a warehouse in Switzerland. By the time you read this, you will have received a full refund.
If you believe you have been the victim of financial misconduct, write to Tony Hetherington at Financial Mail, 2 Derry Street, London W8 5TS or email tony.hetherington@mailonsunday.co.uk. Due to the large number of questions, no personal answers can be given. Only send copies of original documents, which unfortunately cannot be returned.