One fund, Hermay Limited, promised guaranteed returns of 51 per cent, which it claimed could be achieved by investing in other property funds. The FCA understands that the fund took in over £880,000 from 25 investors.

The other fund, Brookbourne Trading, has taken in over £200,000 from six investors without FCA approval; the fund’s assets have been frozen.

Unfortunately, neither fund is authorised by the FCA, and as a result any investments held are not covered by the Financial Services Compensation Scheme; it is thus likely that unlucky investors will have only a “small fraction” of their investments returned. A liquidator, appointed by the FCA to wind down the firm’s operations, will notify investors how much they can expect to receive next month.

The crackdowns come as the FCA launches ScamSmart, an initiative designed to raise awareness of con artists and fraudsters following the pension freedoms coming into effect on 6 April. Martin Wheatley, chief executive of the FCA, has repeatedly expressed concern that retirees could be “preyed upon” by fraudsters promising “too good to be true” returns.

“Our ScamSmart campaign sets out the straightforward steps people can take to protect themselves,” said Wheatley upon the scheme’s and number one is if you get cold called about an investment opportunity, hang up.”