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Sunday 31 August 2014

Millions lost in fine wine schemes

16th April, 2012 by Martin Crummy

Fine wine investors have lost an estimated £100 million over the last four years following the collapse of wine investment firms.

It is estimated that 50 UK-based vintage wine investment firms have collapsed since 2008.

Liquidators told the BBC Radio 4′s Money Box programme that they had uncovered “colossal” mismanagement in a number of companies which offered members of the public a chance to make money by investing in fine wine.

The schemes claimed to offer a higher yield at a time of under performing stocks and low interest rates.

Nadim Ailyan, an insolvency practitioner, said: “There are certainly strong elements of mismanagement on a colossal scale.”

“I would estimate in the last four years there have been at least 50 such companies which have been dealt with by other insolvency firms.”

Some investors admitted they had lost more than £100,000.

The drinks business reported in 2010 that there were numerous reports of wine fraudsters selling bogus en primeur Bordeaux and promoting non-existent investment schemes.

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