Bordeaux Fine Wines Ltd closed in public interest – Kenneth Gundlach admits £12 million worth of wine missing

Happier days for Kenneth Gundlach: Bordeaux Fine Wines Ltd 

sponsored the ROA (Race Horse Owners) Horseracing Awards in 2012

Details here and here
Ken Gundlach is first from left of line across stage 

Bordeaux Fine Wines Limited - in Liquidation 

‘The Company was placed into formal liquidation at the hearing today (26 February 2014) in the Companies Court (High Court, London) on the grounds it is expedient in the public interest on the basis it just and equitable for it to be so under Section 124(a) of The Insolvency Act. The petition brought by the Department for Business, Innovation & Skills had been supported by four creditors with claims totalling c£2,582,000.

The director was not present however the Winding Up Order was not contested. In a statement read out by the Registrar to the Court Mr Gundlach admitted that the Company had purchased insufficient wine to fulfil customer orders. Wine prices had again, according to the director, been inflated by 60% although an investigator had suggested this to be more in the region of 350% given much of the wine had not actually been purchased. The Registrar further commented “It is clear from evidence before me that they did not purchase sufficient wine to fulfil orders”.

The level of indebtedness to the Company could not be quantified at the hearing with The Public Interest Unit suggesting at least £8m as being due to investors as well as HMRC’s claim in the proceedings being c£8m. The director in response to the Public Interest Unit had previously stated “On current allocation £12m of investors will not get wine”.

It was reported in court that the Metropolitan Police have been investigating. 

A meeting of creditors will now take place in London at The Official Receivers Office, 2nd Floor, 4 Abbey Orchard Street, London, SW1P 2HT.  The potential date put to the hearing was 14 March 2014 at 15.00 specifically to appoint an insolvency practitioner, however this date has yet to be confirmed.  The Official Receiver has deemed it appropriate to convene such a meeting given the unknown level of creditors to further ascertain creditor wishes. It should be noted the director is not duty bound to attend the meeting and it is thought highly unlikely he would do so.

Jim:

I’m very grateful to Samantha Street of Grant Thornton for the above summary of this morning’s hearing. If Kenneth Gundlach, the sole director of Bordeaux Fine Wines, is correct in his estimate that investors will not see £12 million worth of wine they purchased, then this is a very substantial shortage. The shortage in last year’s Nouveau World Wines/Finbow totaled some £4.5 million.

Grant Thornton

(I’m happy to post this message on behalf of Grant Thornton for information. Any other insolvency practitioners looking to act as liquidator to Bordeaux Fine Wines Ltd can contact me about posting a similar notice.)

'David Ingram of Grant Thornton UK LLP has been nominated to act as Liquidator by other creditors and as such should anyone involved in the purchase of wine through Bordeaux Fine Wines wish to understand how Grant Thornton UK LLP can represent their interests in this matter please do contact Samantha Street, a manager at Grant Thornton, at samantha.j.street@uk.gt.com or alternatively 0207 728 2651.

Grant Thornton have successfully dealt with a number of wine investment companies making good recoveries for investors noting there will be no charge to investors in making a nomination for David Ingram to be appointed to act.

FInD specialise in tracing and recovering assets and are a national team together with an international reach with a presence in all offshore financial centres. They have recovered assets from many jurisdictions and are currently successfully recovering monies for victims of various investment scams, including off plan property developments, mortgage fraud and boiler room fraud, in the UK, Spain, Caribbean, USA, the Middle East and other overseas jurisdictions.

For further information regarding Grant Thornton's insolvency investigation services please visit http://www.grant-thornton.co.uk/en/Services/Recovery--Reorganisation/Fraud-Insolvency-Division-FInD/'

Blakeney Bridge Wine Ltd: why I wouldn't buy wine from this company

Château Pontet Canet

I have been contacted by AT whose elderly parent has been pressurised by Blakeney Bridge Wine Ltd's telesales into investing in over-priced wine. 

On 19th September 2013 they were persuaded to buy: 

one case (12 bottles) of 2010 Les Forts de Latour for £2,200. The excellent wine-searcher site shows that a case of Les Forts de Latour could have been bought from Magnum Fine Wines on 15th November 2013 for £1675. A saving of £545 on the case.  A case of 2010 Les Forts de latour can now be bought for £1575. 

Then on 17th October 2013 there was a further purchase:  

a case (12 bottles) of 1990 Haut Brion for £6,630. Wine-searcher shows that this wine could have been bought for £4840 on 14.11.2013. It is currently being offered by Berry Bros & Rudd for £4920.
 
En primeur 2012
They were also persuaded to buy 2012 Bordeaux en primeur, which few would consider to be an investment vintage. The purchase was on 17.10.2013. Again they were substantially overcharged by Blakeney Bridge Wine Ltd: 

a case (12 bottles) 2012 Haut Bailly for £635 and due for delivery in 2015. wine-searcher shows that this could have been bought for £455 on 15.11.13

a case (12 bottles) of 2012 Pontet Canet for £935 due for delivery in 2015. wine-searcher shows that this could have been bought for £650 on 15.11.13.

Not only have they been over-charged but the 2010 les Forts de Latour and the 1990 Haut-Brion have not arrived in their account even though they were bought on 19th September 2013 and 17th October 2013 respectively. 

 'The Buying Process'

'5. The wines are transferred to your account with 45 working days with a receipt' Blakeney Bridge Wine website  

'Our promise'!

AT has repeated chased up these wines speaking to a Nicola Martin – probably not her real name as telesales staff employed by these sharks prefer for rather obvious reasons to use a 'persona'. 'Nicola Martin' keeps making excuses saying that it could take nine months from the time of paying for the wine for it to arrive in AT's parent's account!

In this situation there is one very obvious solution: cancel the order under the Distance Selling Regulations. Blakeney Bridge Wine Ltd are then obliged by law to provide a full refund.  

(I understand from AT that a letter was sent yesterday -18.2.2014 - to Blakeney Bridge Wine Ltd at their registered office cancelling the order for the Les Forts de Latour and the 1990 Haut-Brion.) 

The Distance Selling Regulations come into force from the time the contract is concluded. Under the present legislation the buyer has the right to cancel goods bought at a distance eg by phone, email etc. for seven working days from the day after the goods are delivery. This period of seven days is extended to three months and seven days if the seller did not properly explain to the buyer at the time of purchase their rights under the law. 

I would be amazed if Blakeney Bridge Wine Ltd explained properly to AT's parent their rights under the law. See here from Trading Standards. So order can be cancelled anytime from now to three months plus seven days after the wine is finally delivered.   

However, Blakeney Bridge Wine Ltd should be well aware of the Distance Selling Regulations. As this is not the first time I have received complaints about Blakeney Bridge Wines pursuing vulnerable elderly people. Back in late 2012 they persuaded an elderly pensioner to cash in their perfectly good investments for Blakeney Bridge's over-priced wines.

The stung pensioner cancelled his order. Initially Blakeney Bridge Wine claimed that because wine was an investment and the price changed frequently it was a 'financial instrument', so exempt from the Distance Selling Regulations. Blakeney Bridge wanted it both ways – to punt an unregulated investment at vulnerable elderly people and then then to claim that it was exempt from the Distance Selling Regulations.

Fortunately Trading Standards were persuaded that this was nonsense and that the over-priced 'investments' from Blakeney Bridge Wine Ltd were subject to the Distance Selling Regulations. The pensioner got a full refund on their wine but unfortunately lost substantially having paid a penalty on cashing in their good investments.          

***

Blakeney Bridge Wine Ltd was founded on 10 June 2011. Its current sole director and shareholder is 69-year-old Richard Allan. The company's registered office is Airport House Business Centre, Purley Way, Croydon, Surrey CR0 OXZ. Their trading address is unknown. 

The company's founding director was 23-year-old Phillip Stephen Watkins. He is now a director of London Carbon Neutral Ltd and Lcneutral escrow Ltd. Both companies have their registered office at Airport House. 

'Welcome To London Carbon Neutral

Here at London Carbon Neutral we have a portfolio of exciting carbon offset projects for companies and individuals to choose from. This allows you or your business to balance the CO2 emissions emitted while you implement your longer term CO2 emission reduction plans.'

'London Carbon Neutral helps to take the confusion out of buying and selling carbon offsets by providing a comprehensive yet transparent and straightforward service to our clients.'  

Financial Conduct Authority warning on carbon credit trading 

'what is most likely a scam.'

On 13th September 2013 the FCA (Financial Conduct Authority) issued a warning about carbon credit trading – 'Find out how carbon credit trading works, why we think you should avoid investing in carbon credits and related markets, and how to protect yourself from what is most likely a scam.'  

Le Bordeaux Wines Ltd: 25 year old arrested on suspicion of fraud

 Le Bordeaux on facebook

Staffordshire Police are reported (The Drinks Business) to have arrested a 25-year-old man on suspicion of fraud, false misrepresentation and conspiracy to defraud in relation to Le Bordeaux Wines Ltd, a wine investment company. Up to £1 million is said to have been invested in wine through the company, who also offered to buy wine from investors. The man is on police bail until April. 

Le Bordeaux Wines Ltd was founded 9.10.12. 25-year-old Jonathan Charles Braybrook is the sole director. Its registered office and trading address is at 88 Wood Street, London EC2V 7RS – a serviced office. The company's annual return has been overdue since 6.11.13. 

Braybrook is also the sole director of Le Bordeaux Wine Shed Limited founded on 5.10.12, also at 88 Wood Street. He is also a director of Jb Trading & Co Ltd with its registered office and trading address at 11 Burns Road, London, SW11 5AD. Both of these companies are in the process of being dissolved. 

DC Chris Pope, investigating officer for Staffordshire Police, said: “I would like to hear from anyone who has invested in this company, or bought wine from this company, to contact me.

“No matter how much money has been lost it is vital that all those who invested come forward.

“The company’s website is now deactivated and if people try to access it they will be directed to Action Fraud, and ultimately myself.”

Anyone who has fallen victim to Le Bordeaux Wines Limited, or has had any contact with the company, is urged to contact DC Chris Pope at Staffordshire Police on 101 quoting incident number 258 of 9 December 2013, or Crimestoppers anonymously on 0800 555 111.

FCF Wine Investments – ludicrously optimistic projections on over-priced wines.

 FCF's lipsmacking profit projection on 2010 Duhard Milon 

£11,553.03 net profit in four years!!

 

 

I was recently contacted by TG, a putative investor with FCF Investments. This is the trading name of FCF Associates Ltd. The company was founded 10.102011 and has two directors: 38-year-old Matthew Simon Guy and 34-year-old Steven David Carruthers. The company's share capital is £2 – split equally between the two directors. Their trading address is a serviced office in Knutsford. FCF produces ludicrously optimistic projections based on over-priced wines with a 15% service charge! 

FCF Investments sent TG an example 'of the returns you can achieve' enclosing the above chart 'showing the predicted returns for the Duhart Milon Rothschild 2010 over a 4 year investment period. This is calculated based on a 25% increase in value per year (the returns typically experienced over the last 10 years on comparable vintages.' 

This really is flying pig territory especially as FCF Investments sell their wines at a considerably higher price than can be found elsewhere and charge a 15% service charge (10% on purchase, 5% on sale) – presumably for their expertise in overcharging. 

FCF Investments propose to charge TG £1089 for a case of 2010 Duhart Milon (£990 per case plus 10% service charge). However, a quick shop around on wine-searcher.com shows that a case (12 bottles) of the 2010 Duhart Millon can be bought for £600 a case from both Ditton Wine Traders and Seckford Wines – an immediate saving of £489 a case. As FCF Investments told TG he should buy 10 cases this is a saving of £4890!

FCF's projections have no basis in reality as Bordeaux prices have fallen considerably since 2011. For a look at the real world of fine wine prices and their movments see http://www.bordeauxindex.com/market.php as well as the Liv-ex indices.

FCF's advice on tax liabilities is also wrong. Bordeaux First Growths bought when young from good vintages are unlikely to qualify as 'wasting assets'. FCF claims that wine for inheritance tax 'is valued at acquisition cost, not current value'. This is incorrect it is assessed at 'current value'. of course given FCF Investments' high price policy this may be an unexpected advantage!    

If the fine wine market was really buoyant and a sure-fire source of profits, it is unlikely that we would have seen the collapse of several wine funds over the past year including Nobles Crus, Vintage Wine Fund and, most recently, The Bordeaux Fund. The latter reported by Wealth Manager (City Wire) to have lost 58% since its launch in 2008.   

Fortunately TG declined FCF Investments kind offer of over-priced wine investments. I suggest you do the same. 

 

White Knights - a renewed warning

Investors in the failed wine investment company, The London Vines Ltd, continue to be approached by White Knights offering to assist. A recent example is Elliott House Collections Ltd (Company number: 08352626) offering to exchange investors wine for art. Doubtless these exchange offers are kindly meant but I would certainly decline them. 

Elliott House Collections Ltd was set up on the 9th january 2013. Its registered and trading address is 68 King William Street, London EC4N 7DZ – a well known accommodation address. The company's sole director is is 26 year old Harry James Downer. 

Other companies offering assistance include One Vine Day, Vine Capital and Woolf Sung. If I was an investor with The London Vines Ltd I would decline their offers and propositions as well.   

•••

Barry Gamble

The many friends of Mr Gamble will no doubt be delighted to learn that he has apparently added recently a large extension to his house. It is also rumoured that he may be facing personal bankruptcy. Apparently the house in the joint names of Gamble and his wife.    

Gamble was a director of The London Vines Ltd from 26 January 2010 to 9th April 2013. The company went into liquidation on 12th November 2013. A number of investors have been unable to locate their wine.

Bordeaux Fine Wines Ltd – appointment of liquidator

It seems very likely that Bordeaux Fine Wines Ltd will be put into full liquidation on 26th February 2014 when the Insolvency Service's petition is due to be heard in the High Court.

I am happy to put up the following message from Grant Thornton UK LLP, who have been asked to act as liquidators with David Ingram, acting as liquidator, if the provisional liquidation is confirmed. 

I am also prepared to put up similar notices from any other companies wishing to be appointed as liquidators to Bordeaux Fine Wines Ltd.

••

Message from Grant Thornton to creditors of Bordeaux Fine Wines Ltd:

URGENT ACTION REQUIREDBordeaux Fine Wines Ltd (“BFW”), a company that sold wine to investors, was put into provisional liquidation by the High Court in the public interest on 19 December 2013, following an investigation by the Insolvency Service.

The Official Receiver is acting as provisional liquidator with a hearing set for 26 February 2014 to place the company into formal compulsory liquidation. It is at this point that an Insolvency Practitioner may be appointed to act as Liquidator to investigate the financial affairs of the company and seek to maximise the potential return to creditors.

Should BFW be placed into liquidation at the hearing HMRC wish to request David Ingram, who is a partner in The Fraud Insolvency Division (FInD) at Grant Thornton UK LLP, to act as Liquidator.

Should you be a creditor having previously purchased wine through BFW and wish to know how Grant Thornton UK LLP can represent your interests in this matter please do contact Samantha Street, a manager at Grant Thornton, at samantha.j.street@uk.gt.com or alternatively 0207 728 2651.

Grant Thornton have successfully dealt with a number of wine investment companies making good recoveries for investors noting there will be no charge to investors in making a nomination for David Ingram to be appointed to act.

FInD specialise in tracing and recovering assets and are a national team together with an international reach with a presence in all offshore financial centres. They have recovered assets from many jurisdictions and are currently successfully recovering monies for victims of various investment scams, including off plan property developments, mortgage fraud and boiler room fraud, in the UK, Spain, Caribbean, USA, the Middle East and other overseas jurisdictions.

For further information regarding Grant Thornton's insolvency investigation services please visit http://www.grant-thornton.co.uk/en/Services/Recovery--Reorganisation/Fraud-Insolvency-Division-FInD/