Insolvency Service Winds Down 'Unscrupulous' Companies

The UK's Insolvency Service has announced a number of companies are to be ordered into liquidity following investigations into "unscrupulous" practices.

On Thursday, the Insolvency Service announced a compay that mis-sold undeveloped land for investment to the public had been ordered into liquidation in the High Court on grounds of "public interest" after an investigation.

The investigation found that Crestmore International Limited acted as an agent on behalf of Montrose Partners Ltd and The Montrose Partnership Ltd, two companies which had previously been wound up in public interest after similar misleading and unfounded statements in relation to the land.

The company traded for just over a year and sold at least 48 plots of land which had also already been sold to other investors by the two Montrose companies, raising around £535,796. The company used the slogan: “Land, it’s the only commodity you can really bank on”.

Commenting on the case Company Investigations Supervisor Chris Mayhew said: “The public should not fall for a slick sales pitch, glossy marketing brochure, fancy websites and promises of easy money."

Also on Thursday, two car repair companies, Bray Engineering Limited and MPH Engineering Limited, were wound up in the High Court in London after an investigation by the Insolvency Service.

The companies, which were jointly owned, operated nationally using a number of trading styles and websites.

The investigation showed the companies vastly inflated the costs of the work they undertook. They also misled and intimidated their customers.

Both companies were originally based in Southall, Middlesex and more recently operated from Robinsons Farnell Warehouse, Isleworth, Middlesex.

The court heard that the companies effectively operated one business; that of engine reconditioning and repairs, and generated business via a number of websites.

The Insolvency Service’s investigation discovered 429 customer complaints made against the companies within a three-year period, where customers had paid around £1.2m for parts and services which had either not been provided or were subject to dispute.

Finally, the service also announced petitions to wind up two companies offering internet banking and securities dealing services.

Hollymead plc, formerly known as O3 Fincoop plc operating through service addresses in London and more recently in Leeds, offered internet banking services to potential clients through its website www.o3fincoop.com which has now been closed down by The Financial Services Authority.

Sovereign Clearing House Limited, operating from an address in Birmingham, claimed to sell volumes of securities for which advance fees were paid by prospective buyers including off shore customers from the USA, Canada and Hong Kong.

The case is now subject to High Court action and no further information will be made available until the petitions are heard in the High Court on 9 January 2012.

(DW)