Even experienced investors can sometimes be naïve and that is one reason why it is vital to obtain independent advice before entrusting large sums of money to others. In a case on point, a judge had to come to the aid of a lovestruck businessman who transferred a six-figure sum to a woman he met on an Internet dating site.
The woman had misrepresented herself on the site as a finance professional. During the nine months they were together, he paid £182,000 into her bank account. Following the end of their relationship, however, he launched proceedings to recover the money. He admitted that he had been naïve and blinded by romantic attraction.
In resisting the businessman’s claim, the woman pointed out that he earned a very high income, that they had lived together and that the relationship was clearly a serious one. Their relationship was intimate, rather than professional, and the bulk of the money had been given to her in order to fund their luxurious lifestyle.
In ruling on the matter, the judge noted that it might be thought strange that an experienced businessman would, without any form of written agreement, advance substantial sums to a woman he had only recently met on the Internet. She had, however, led him to believe that she was an expert investor.
In finding that the woman had no realistic prospect of successfully defending the claim, the judge observed that contemporaneous evidence clearly indicated that the money had been transferred to her on the understanding that she would invest it on his behalf. In those circumstances, she was ordered to repay the money, plus £3,642 in interest.
