in a get-rich scheme that their money will be guaranteed by the Irish Government's bank guarantee scheme. English-born Graham Cockroft, who works in the Algarve, claims his company can change $10m into $440m within 40 weeks thanks to what he calls private placement trade platforms.

Wholesalevillas Lda, a company owned by Harley Davidson-driving Cockroft, is selling the investments by saying the money will be held by UK banking giant HSBC and guaranteed by the Irish Government's unlimited two-year guarantee on all deposits and certain debt in seven Irish banks.

Both HSBC and Ireland's financial regulator have told the Irish Independent that the investment scheme has nothing to do with them.

Following an approach by the Irish Independent, Mr Cockroft admitted the offer "probably was not genuine" and said he had offered it to the public following an approach by a "very bone fide chum of mine".

Wholesalevillas claims in an email to would-be investors that it recently invested funds in "Eire" because "the Irish Government also provides 100pc security against loss for all deposits held in Irish banks. In this instance it is HSBC, Dublin". HSBC reacted with bemusement yesterday, saying that it had never heard of Wholesalevillas. "HSBC is not involved in this scheme," said HSBC marketing executive Martina McDonnell.

A spokeswoman for the Financial Regulator Nicola Faulkner said Wholesalevillas is not authorised by the regulator and any investment made with an unauthorised firm is not covered by the Investor Compensation Scheme.

She said yesterday that there had been no noticeable rise in scams since the scheme was introduced last year.

The email sent by Mr Cockroft warns would-be investors there is no printed material about his deals "because there are too many unscrupulous people working the internet to defraud prospective clients."

- Thomas Molloy