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Court shuts down companies that tried to rip-off victims of wine investments scams


Court shuts down companies that tried to rip-off victims of wine investments scams

Capital Bordeaux Investments Limited and Capital Bordeaux Investment Corporate Limited, two London-based companies that claimed they could help victims of previous wine investment scams, have been wound up in the High Court following an investigation by the Insolvency Service.

Capital Bordeaux Investments Limited targeted victims of previous wine investment companies and falsely represented that it could assist them in recovering their losses. Instead, the company solicited further investment from these victims on the basis of false and misleading information. Investors were told that the company would be able to recover and sell their previous wine investments – even if these were made through a company which had gone into liquidation – but the investor was required to buy more wine through Capital Bordeaux Investments Limited.

The companies were wound-up on 14 May 2014.

Commenting on the case, Colin Cronin, an 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 Investment Corporate Limited facilitated the operation of this business by allowing its bank account to be used to receive the investment monies. Its bank account shows receipts of £243,980.

The investigation found no evidence to show that any wine was bought by either Capital Bordeaux Investments Limited or Capital Bordeaux Investment Corporate Limited; or to show that either company made any attempts to, or had any ability to, recover previous losses suffered by investors.


About The Author

Mark Hodgson

Mark Hodgson is the Managing Director of Tremark Associates, one of the UK’s leading providers of investigative services. Mark has 30 years experience in private Investigations and the commercial debt recovery industries. He is Vice President of the Association of British Investigators, a member of the World Association of Detectives, The Institute of Credit Management and an associate member of R3 -The Association of Business Recovery Profession.


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