Fine wine investment scam

A recent investigation by the Insolvency Service has seen two directors of a company selling fine wines disqualified for a total of 20 years. Crimson Fine Wines Limited cold-called customers and offered them the opportunity to take part in fine wine investment scheme offering high returns over periods varying from 12 months to five years.

However, the investment scheme was no more than a scam as the company did not purchase or allocate wines to those who had paid for their investments. The company went into liquidation and there was insufficient wine held in the bonded warehouse to satisfy customers’ claims. The overall debts in the company after liquidation exceeded £1m.

The two company directors, one based in Canada and one in the UK were disqualified after the Secretary of State for Business Energy and Industrial Strategy accepted the disqualification undertakings. The disqualification means that the directors cannot promote, manage, or be a director of a limited company for 11 and 9 years respectively.

Commenting on this case Karen Jackson, Official Receiver in the Public Interest Unit, part of the Insolvency Service, said:

‘One of the main purposes of the Company Directors Disqualification Act is to ensure proper standards of conduct of company directors are maintained and to raise those standards where appropriate. These disqualifications should serve as a reminder that the Insolvency Service will investigate unacceptable conduct by company directors. The Insolvency Service will take action against directors who do not take their obligations seriously and abuse their position.’

Posted in General

Exeter Accountant MJ Smith & Co

Celebrating 25 years of excellence.

Free 1st Meeting
Fixed Fees
Free Support!

Find out more

Client Portal Login

Forgot Password?

Latest News

How the £1,000 trading allowance works

There is a £1,000 tax allowances for miscellaneous trading income that has been available to taxpayers since April 2017. This …
Read More

When is lettings relief available?

In general, there is no Capital Gains Tax (CGT) on a property which has been used as the main family …
Read More

Qualifying for VAT special schemes

There are three main special VAT schemes available to small businesses. These are the flat rate scheme, the annual accounting …
Read More