The art of getting a £7,600 refund… get TONY HETHERINGTON to investigate

Tony Hetherington is Financial Mail on Sunday’s ace investigator, fighting readers corners, revealing the truth that lies behind closed doors and winning victories for those who have been left out-of-pocket. Find out how to contact him below. 

Ms M.H. writes: I bought artwork from Smith & Partner Limited last August, and later I purchased another two pieces. 

I was naive and believed this to be a good investment because of the strong sales pitch. Since then I have been continually fobbed off. It never sends emails, only calls claiming it has ‘great news’. 

As time has passed, I have realised how much rubbish I have been fed. I have asked that the artwork is resold, but I am palmed off all the time.

Tony Hetherington replies: You contacted me following my report on December 11 that an elderly investor had pumped £17,000 into limited edition prints sold by Smith & Partner, after he was told that his first purchase had soared in value and shown a £3,000 profit within weeks. I asked the art company’s owner Luke Sparkes for details of this amazing piece of art. He failed to answer, but I am delighted to add that he has just given the elderly investor a complete refund. 

One of the attractions of the scheme is that Sparkes advertises that his investors can notch up ‘potential returns of up to 64.6 per cent in just 12 months’. I questioned this, and Sparkes has told me that just such a profit was made once, back in 2017, when the business had just begun and before he took over. If there had been a repeat performance – or a bigger profit – since then, I expect he would have been keen to highlight it. 

I also questioned Sparkes about his company’s financial position. The latest Companies House accounts show it being in serious trouble with the taxman. I asked Sparkes twice about this ahead of last month’s report but he failed to answer. 

He now says the dispute has been settled, though the figures are unclear. Similarly, the accounts show Sparkes himself borrowed £459,038 from the business. I asked whether he has since repaid this, but Sparkes has not answered.  

When I pressed him about your own investments, Sparkes told me: ‘Please note that I have shared supporting evidence with you to the extent that we are permitted to do.’ He added he would be happy to share further evidence ‘if given permission to do so’. 

Well, last Monday I gave Sparkes your legally binding signed authority, allowing him to discuss your complaint with complete freedom, and to hand over any documents or other records about Smith & Partner’s dealings with you, including its sales pitch. And last Tuesday he refused.

There are lots of question marks hanging over this scheme. Smith & Partner advertises its ‘vast expertise within the art investments market’, but will not say who exactly has this vast expertise and where they obtained it. 

Prints which are produced by a separate company controlled by Sparkes are marketed by his telephone salesforce based near the Shard building in London, but investors are bound by written terms and conditions. Are these read out to them in sales calls? How can they be bound by conditions they have not seen? I asked, but Sparkes offered no explanation. 

Despite all this, I can report two bright spots. Sparkes conceded that his company’s advertising included incorrect advice about tax due on any profits made by investors. He is correcting this. And the other good news? You bought prints costing £7,651, 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 are the victim of financial wrongdoing, write to Tony Hetherington at Financial Mail, 2 Derry Street, London W8 5TS or email tony.hetherington@mailonsunday.co.uk. Because of the high volume of enquiries, personal replies cannot be given. Please send only copies of original documents, which we regret cannot be returned.