Capstone Formations Ltd – a truly remarkable history! Compare and contrast

 Traded £9.6 million worth of wine between 2013 and 2015!!

It is always interesting to compare and contrast!

The history of Capstone Formations Ltd by James Hutton, the company's director:

He studied at the London school of business and economics and then worked in many financial districts around the world. He has build up a strong reputation in the City of London and has helped 1000s of clients whilst working under the name of some of the largest companies internationally. 

In 2010 James started planning and building his own company  – Capstone Formations Ltd. The limited company was incorporated in 2013. Capstone Formations grew rapidly managing the portfolios of over 2000 clients within the alternatives market. He was able to employ a further 30 staff. 

The company offers expertise in fine wine, gold bullion, property and diamonds. 

In December 2015 Capstone completed talks that had been started at the beginning of the year and merged with Fenbow Fortune Enterprise Ltd, whose business is mainly in the Far East.

Between 2013 and 2015 the company traded £9.6 million worth of wine. Capstone Formations has grown 30% every year since 2013.   

 'Restructuring and diversifying portfolios' 

'The growth of the company from 2013 to 2015'

The history of Capstone Formations Ltd from documents filed with UK Companies House
Fenbow Fortune Enterprise Ltd, the former name of Capstone Formations Ltd, was formed on 11th December 2013 with Konstantin Nemchukov as the sole director. Nemchukov has 300 company appointments and appears to work for a company formation agents at 3rd Floor, 120 Baker Street, London W1U 6TU.     

Fenbow was a dormant company until early 2016 filing dormant accounts up to 31st December 2015 (filed 4.1.2016). 

On 12th January 2016 Nemchokov resigned as director. 26-year-old James Hutton (DOB: January 1990) was appointed as the sole director on the same day. Hutton, described as a builder, lives at Flat 237 Glebe Court, London Road, Mitcham, Lodnon CR4 3NZ. Also on 12th January Hutton became the sole shareholder holding the £1 share capital and the registered office changed to 2 Queen Caroline Street London W6 9DX. This is a Regus serviced and virtual office. 
 

The following day (13th January 2016) the company name changed from Fenbow Fortune Enterprise Ltd to Capstone Formations Ltd. It has no connection with the US equity company – Capstone Partners, although this may have been a factor behind the choice of 'Capstone'.  

The Capstone Formations Ltd website was registered on 7th January 2016.   

 

Formation of Fenbow Fortune Enterprise Ltd: 
11th December 2013 

Balance sheet of dormant company – 
Fenbow Fortune Enterprise Ltd with £1 share capital 

Change of company name on 13th January 2016 

from Fenbow Fortune Enterprise Ltd 

 to Capstone Formations Ltd.  

 

Capstone website registered on 7.1.2016 

 

James Hutton's director's details

My conclusion:

Although it is clear that considerable time has been spent on the Capstone Formation Ltd's website, I prefer to believe the version filed with Companies House. This indicates that James Hutton's version is complete fiction and obviously designed to fool potential investors that Capstone Formation Ltd and James Hutton have the necessary expertise to advise investors and to manage their portfolios.  

Hutton claims to have studied at the 'London school of business and economics' – I can find no record of any such school. He claims a glittering financial career prior to 2010. However, in 2010 Hutton was just 20 years old and the filing of his directorship of the company lists him as a 'builder'.

Capstone did not start trading until January 12th 2016 at the earliest, so did not trade £9.6 million worth of fine wine. Nor did it merge with Fenbow Fortune Enterprise Ltd – that was merely a change of company name. 

Is James Hutton, a builder from Sutton, the real director or are others involved?

I will be giving James Hutton and Capstone Formations Ltd a very wide berth as I have never had any interest in investing in porkies. 

Update: 18th February 2018
The company was compulsorily dissolved on 27.6.2017
 

 

Checking a company out

You have been cold called and for some reason decided to listen to the salesman's spiel about the wonderful wine investment deals they can offer. We'll call the company, Bordeaux Investment Scams Ltd based in the UK.

Ignoring for the moment my advice not to accept cold calls, how can you check out the company and whether the wine they are offering is a good deal?

The good news is that the internet makes it easier than ever to make a number of checks.

Companies House (updated 21.11.2015)
I tend to start here with the UK's companies web check on the Companies House site. There used to be a charge for all but a limited amount of information. However, information on the Beta site is now free, which is really excellent news.  If it is a limited company or a plc you'll find details here of when it was set up, who the directors are, annual returns and accounts. Look for the date when the company was set up. Let's use our imaginary company – Bordeaux Investment Scams Ltd – as an example.

Bordeaux Investment Scams Ltd was set up in October 2007, so how come the salesman claimed that the company had long experience in wine investment?

The company's registered office is 72 Bond Street, London W1S 1RR. This is a well-known accommodation address offering telephone answering services and message centres. Nothing wrong with this, of course, but this means that Bordeaux Investment Scams Ltd is unlikely to have offices here, so the company could be difficult to find if need arises.

The company's annual return and accounts are shown to be overdue. Under UK company law companies have to file an annual return and accounts – so two more warning signs.

Apart from details of any change of company name, this is the extent of the free information. However, you can pay to get details of the company directors and accounts etc. Each of these will cost £1. A small price to pay if you are considering spending substantial sums on buying wine for investment.

Company website
Bordeaux Investment Scams Ltd has a website. This can also be quite revealing. Ask yourself a few questions as you look through the site:

a) Does it tell you who the directors are or who runs the company?
b) Is there a contact address? Is it still 72 Bond Street? If there's another address do a Google search? Is this new address also serviced offices?
c) Is there a price list?
d) Does Bordeaux Investment Scams Ltd charge an up-front commission? The UK Government warns against this practice. It is easier to buy wine than to sell it, so it is better to pay a commission when selling rather than when buying. Furthermore if the company disappears you will have to pay a commission to another company if you then want to sell your wine.
d) Is the site long on wine's mystique but short on details?
e) Does Robert Parker, the influential wine critic, feature prominently? Without Parker's consent or knowledge a number of dubious investment companies have tended to have a section on their website about him.


Checking the website registration
All websites have to be registered and there are a number of sites that allow you to check the registration details. I tend to use http://www.who.is/ Do the registration details give the name of a person in the UK to contact or is there merely the details of an admin company usually based in the USA?

Checking the wine offer

Use wine-searcher to check the prices. See further details here. Also there is a wine-searcher facility at the top of this page.

Hopefully these checks will help you decide whether the company that has contacted you is both reputable, well-established and is offering you a fair deal. If you have any doubts, then don't buy from them.

Furthermore before you buy contact other wine merchants and seek their advice. Read about wine investment – do your research!