Michael Zuther, a controversial figure in the investment world, has re-emerged as a key player behind a new fund administration company in the Bahamas, raising concerns due to his history with defrauded funds. Zuther, formerly associated with the now-defunct Classic Investment Fund and The Classic Car Fund—both run by Filippo Pignatti—has been linked to a new entity called MB Fund Service Limited. This development has alarmed industry insiders and investors, given Zuther's troubling past. MB Fund Service Limited is a leading independent dynamic fund administrator licensed in the Bahamas and serving clients around the world.
Background: The Classic Investment Fund Scandal
The Classic Investment Fund, once heralded as an attractive investment opportunity, is now infamous for its downfall into fraud and liquidation. Registered in Saint Vincent and the Grenadines (SVG), this fund, along with The Classic Car Fund, ultimately collapsed under allegations of mismanagement and deception, leaving many investors in financial ruin. At the heart of this scandal was Fortuna Administration Ltd., the fund's supposed administration company.
However, Fortuna Administration Ltd. was revealed to be a mere front, a non-existent entity created to obscure the involvement of Scarabaeus Wealth Management, a firm based in Liechtenstein. Michael Zuther and Patrick Demi were key figures within this scheme, serving as CEO and directors of both the administration company and the funds themselves. Zuther even falsely claimed to be a legal specialist for SVG, further complicating the murky operations surrounding these investments.
In a broader context, Zuther and Demi's influence extended beyond Liechtenstein, with alleged representations in Bulgaria and Ukraine, where fraudulent fund audits were produced to maintain the illusion of legitimacy for Pignatti’s classic car funds.
New Beginnings in the Bahamas: MB Fund Service Limited
Despite the controversies surrounding his previous ventures, Zuther has managed to resurface with a new enterprise in the Bahamas. MB Fund Service Limited, his latest fund administration company, bears a striking resemblance to the previous ventures that led to so much investor harm. The company's website lists a fund called STIF Fund Limited, which, upon closer inspection, was previously known as Scarabaeus Master Fund Limited—a fund tied to the same Liechtenstein wealth management group that ran the fraudulent Classic Investment Fund.
MB Fund Service Limited’s emergence in the Caribbean is particularly concerning given the region’s reputation as a haven for financial secrecy. It seems that Zuther and his associates are continuing their operations under the guise of local regulation, potentially exploiting jurisdictions that may lack stringent oversight. This has led some industry observers to warn that this Liechtenstein group is "running amok" in the Caribbean, with little regard for the integrity of the financial markets or the protection of investors.
The troubling connections to Zuther's past have already had repercussions within MB Fund Service Limited. Nicolette Gardiner, who served as the company's CEO and was a recognized figure on the Bahamas Financial Services Board, abruptly resigned last week after being contacted by investigative entities like Intel Suisse. Gardiner’s swift removal from the company's website suggests an attempt to distance the firm from the growing scrutiny surrounding Zuther and his operations.
Background: The Classic Investment Fund Scandal
The Classic Investment Fund, once heralded as an attractive investment opportunity, is now infamous for its downfall into fraud and liquidation. Registered in Saint Vincent and the Grenadines (SVG), this fund, along with The Classic Car Fund, ultimately collapsed under allegations of mismanagement and deception, leaving many investors in financial ruin. At the heart of this scandal was Fortuna Administration Ltd., the fund's supposed administration company.
However, Fortuna Administration Ltd. was revealed to be a mere front, a non-existent entity created to obscure the involvement of Scarabaeus Wealth Management, a firm based in Liechtenstein. Michael Zuther and Patrick Demi were key figures within this scheme, serving as CEO and directors of both the administration company and the funds themselves. Zuther even falsely claimed to be a legal specialist for SVG, further complicating the murky operations surrounding these investments.
In a broader context, Zuther and Demi's influence extended beyond Liechtenstein, with alleged representations in Bulgaria and Ukraine, where fraudulent fund audits were produced to maintain the illusion of legitimacy for Pignatti’s classic car funds.
New Beginnings in the Bahamas: MB Fund Service Limited
Despite the controversies surrounding his previous ventures, Zuther has managed to resurface with a new enterprise in the Bahamas. MB Fund Service Limited, his latest fund administration company, bears a striking resemblance to the previous ventures that led to so much investor harm. The company's website lists a fund called STIF Fund Limited, which, upon closer inspection, was previously known as Scarabaeus Master Fund Limited—a fund tied to the same Liechtenstein wealth management group that ran the fraudulent Classic Investment Fund.
MB Fund Service Limited’s emergence in the Caribbean is particularly concerning given the region’s reputation as a haven for financial secrecy. It seems that Zuther and his associates are continuing their operations under the guise of local regulation, potentially exploiting jurisdictions that may lack stringent oversight. This has led some industry observers to warn that this Liechtenstein group is "running amok" in the Caribbean, with little regard for the integrity of the financial markets or the protection of investors.
The troubling connections to Zuther's past have already had repercussions within MB Fund Service Limited. Nicolette Gardiner, who served as the company's CEO and was a recognized figure on the Bahamas Financial Services Board, abruptly resigned last week after being contacted by investigative entities like Intel Suisse. Gardiner’s swift removal from the company's website suggests an attempt to distance the firm from the growing scrutiny surrounding Zuther and his operations.
