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Thursday 23 October 2014

Wine firms that preyed on fraud victims shut down

21st May, 2014 by Lauren Eads

Two London-based wine firms that worked together to cheat defrauded wine investors out of more money by claiming they could help recover their losses have been shut down.

Court house

Capital Bordeaux Investments Limited targeted the victims of previous wine investment scams and falsely claimed it could assist them in recovering their losses.

Instead, the company encouraged further investment based on misleading information, without having bought or sold any wine, raking in more cash from its victims.

Its partner company, Capital Bordeaux Investment Corporate Limited, facilitated the scam by allowing its bank account to be receive £243,980 in sham investments.

The High Court ordered the closure of both companies on 14 May in the public interest following an investigation by the Insolvency Service which found no evidence that either company had bought any wine, nor made any attempt “or had any ability to” recover the previous losses suffered by investors.

Colin Cronin, investigation supervisor with the Insolvency Service, said: “These companies cynically targeted people who had already lost money in other wine investment scams and exploited their desire to try and recover some of their original investment. The companies were incapable of recovering such losses.

“Significantly, none of the funds received from investors were used to buy wine and were instead used for the benefit of those in control of the companies.

“I would urge victims of wine investment scams to exercise great caution if approached by companies which purport to be able to assist in recovering their past losses.”

Capital Bordeaux Investments Limited was incorporated on 24 April 2012. Capital Bordeaux Investment Corporate Limited was incorporated on 12 October 2012. The registered office of each company was at 68 Lombard Street, London EC3V 9LJ.

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