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.
Notes to Editors
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.
The petitions to wind up Capital Bordeaux Investments Limited and Capital Bordeaux Investment Corporate Limited were presented under s124A of the Insolvency Act 1986 on 13 February 2014. The companies were wound up on 14 May 2014.
Company Investigations, part of the Insolvency Service, uses powers under the Companies Act 1985 to conduct confidential fact-finding investigations into the activities of live limited companies in the UK on behalf of the Secretary of State for Business, Innovation & Skills (BIS). Further information about live company investigations can be found on our website at: http://www.bis.gov.uk/insolvency/Companies/company-investigation.
The Insolvency Service also administers the insolvency regime, investigating all compulsory liquidations and individual insolvencies (bankruptcies) through the Official Receiver to establish why they became insolvent. In addition, the agency authorises and regulates the insolvency profession, deals with disqualification of directors in corporate failures, assesses and pays statutory entitlement to redundancy payments when an employer cannot or will not pay employees, provides banking and investment services for bankruptcy and liquidation estate funds and advises ministers and other government departments on insolvency law and practice. Further information about the work of the Insolvency Service, and how to complain about financial misconduct, is available from: http://www.bis.gov.uk/insolvency.
By virtue of the winding up order all public enquiries concerning the affairs of the company should be made to: The Official Receiver, Public Interest Unit, 4 Abbey Orchard Street, London, SW1P 2HT. Telephone: 0207 637 1110 Email: firstname.lastname@example.org.
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