Warning – Lynch & Mullin, LLP – shares in Winex-Ex Inc.

 website record for Lynch & Mullin 

– creation date 18 July 2016

Very recently in a most useful message from KP, an investor in collapsed Vinance PLC, a scam wine investment company. An impressive piece of research by KP. Two investors with closed Bordeaux Fine Wines Ltd have also been contacted this month offering the exactly same share scam. 

'Dear Jim,

I wanted to warn the readers of your blog about a new scam going on:

Today I received a cold call from a chap called "Mark Schratton" from a "law firm" called Lynch & Mullin, LLP from Boston, Massachusetts.

The story made kind of sense: "You invested in Vinance PLC some time ago, it looks like those unscrupulous owners who are now all in prison* purchased shares in a company called Winex Inc. and put your name as a shareholder without you knowing as a means of routing/ stashing their investor money. As it turns out, you're in luck because you're now owner of 30,000 shares which our client is looking to buy".

I did invest in Vinance PLC, lost money on it and yes the management of that company is now in prison (or at least some of them). The chap had my contact details, my name, phone number and email. I checked the law firm's website - basic but otherwise well respectable.

Then "his colleague" sends me legal documentation advising me that I own 30,000 shares at $5 each and asks me to fill in my contact and bank details as soon as possible (best today). All looking very legit and professional.

I asked to see my share certificate - and they even produced that.

A few issues with the master plan:

1. Lynch & Mullin LLP does not exist - there's no mention of them in the Massachusetts commercial registry
2. Their website was only registered a month ago
3. There are no legal articles with this firm's name anywhere to be found (Google, Law360...)
4. They managed to produce a share certificate "from the registration authorities" (which they did not originally have) within 1 hour
5. Winex-Ex Inc does not exist - there's no mention of them in the Nevada commercial registry (Nevada as per my "share certificate")
6. In the legal documentation they mention some bogus government agency - the website mentioned in the document is empty (just registered). When asked about it "Mark" provided a different address which was registered only a week ago with apparently the intent for people to contact them to verify that Lynch & Mullin is an actual firm.
7. The servers of this "US govt agency" are hosted in France... hmmm

I must say that these scams are getting quite sophisticated and it's easy to fall for them. Beware.

Best regards,'

•••

How this advance fee scam works:

As KP says this is quite a sophisticated scam as it involved both setting up a website for a fictitious US law firm by cloning a legitimate American law firm's site and another site that purported to be a US Government securities agency.

Ex-clients of failed wine investment companies – Bordeaux Fine Wines Ltd and Vinance plc so far – are cold called by someone from American 'law firm' Lynch & Mullin,  and told that their wine company has purchased shares – see KP's story above. Staff names to date at Lynch & Mullin are Mark Schratton, James Fischer, Matthew Cohen and Andrew William Marks – probably all false names. 

Compare and contrast 

The scam Lynch & Mullin, LLP site in 'Boston'

 Carr, Morris & Graeff, PC – legitimate US law firm in Virginia and DC

site cloned by Lynch & Mullin  

More cloning ..... Lynch & Mullin above

 Carr, Morris & Graeff, P.C.

 Lynch & Mullin, LLP (scam)

Carr, Morris & Graeff, P.C. – cloned by Lynch & Mullin

Who is? Lynch & Mullin's website 

created 18th July 2016

The investor is told that these 30,000 shares in Winex-Ex Inc. are restricted and are advised to contact the International Securities and Investments Commission (ISIC). They are told that the ISIC is a US government Regulatory, who will make enquiries about removing the restriction. Investors are told that there will be a fee for removing the restriction. Lynch & Mullin send out a share certificate for 30,000 shares in Wine-Ex Inc along with transfer documents. Winex-Ex Inc does not exist, although Google does show a Winex Inc in New Jersey, which was established in 1994 and surely a legitimate company and nothing to do with these scammers.  

Certificate for 30,000 shares in Wine-Ex Inc  

$150,000 transfer of shares to Lynch & Mullin  

Investor GJ contacted the ISIC and dealt with a Mr. Mark Gibson, International Affairs, and based at 277 Park Avenue, New York NY 10172. Gibson advised that the fees to derestrict the shares are: 

Option 1 a fee of 25c per share with the restriction removed within 10/14 days. $7500 on 30,000 shares.

Option 2 a fee 30c per share with the restriction removed within 24/48 hours. $9000 on 30,000 shares.

     

Anyone, who sells their 30,000 shares to Lynch & Mullins, will never see their money instead they will have had their wallets thinned by either $7500 or $9000.

International Securities and Investments Commission (ISIC).

Despite its impressive name the International Securities and Investments Commission (ISIC) is a recently created scam. Its website was created on 9th August 2016. The registrant's name is given as Jonathan Richardson, EDF Grande 2, Piso 1, Barcelona, Spain  

The real bona fide US government agency is: 

U.S. Securities and Exchange Commission  https://www.sec.gov/

Please note that ISIC has no connection with the Australian Government's ASIC – Australian Securities & Investments Commission. 

Update: 18.8.2016 20.35
It appears that the Lynch & Mullin website has disappeared. As anon pointed out below their website appears to have been a clone of Carr, Morris & Graeff, PC, a legitimate law firm based in Washington DC, whose website was registered in April 1997. 

Sorry the website lynchandmullin.com 

cannot be found 

This is good news but it is very possible that the scammers will just set up another cloned website.  
    

••   

Update: 24th August 2016 

The cloned site is back up but as http://lynchandmullin.net replacing http://lynchandmullin.com peddling a similar scam using shares in Eco Care Global Inc. 

•••

* The four directors of Vinance Plc have all been disqualified from acting as UK directors. Simon Earl – 10 years and Simon Ford, Paul Ford, Mike Wallen – 9 years each. Details here. In February 2013 Simon Earl and Mike Wallen were jailed for their part in running a brothel and prostitution ring. Details here. 

 

Penketh Associates (Penketh Developments Ltd) false claim re Bordeaux Fine Wines

'subsidary' (sic) arm of PENKETH DEVELOPMENTS LTD

Our services: Penketh Associates – investment planning, 

retirement planning, planning your estate, personal cash  

Update: 30th August 2016 – the above website, which was registered on 28th July 2016, has now disappeared.  

••

Crates and pallets & site construction in Islington 

••

Birmingham: 'so Penketh Developments Limited 
is engaged in Buying and selling of own real estate'

Here we have yet another company – Penketh Associates, a subsidary (sic) of Penketh Developments Ltd – that is claiming falsely to have taken over as liquidator of Bordeaux Fine Wines Ltd from David Ingram of Grant Thornton as well as recovering missing wine for investors. 

Message from Grant Thornton – re Bordeaux Fine Wines Ltd

'In addition, we have been contacted by a number of investors recently who have been contacted by a company called Penketh Associates (penkethassociates.co.uk). They have been advising creditors (in Bordeaux Fine Wines Ltd) they have replaced David Ingram (Grant Thornton) as Liquidator and that they have "found their wine". One investor has transferred £10,000 and surprisingly hasn't received anything in return.

I have advised the police of this company and they are currently assisting the creditor to get their money back."  

Company history and activities
It has to be said that Penketh Developments Ltd is somewhat of a mystery. Penketh Developments Ltd was founded on 9th December 2002 with a share capital of £2 held by the company formation agents. It remained a dormant company until 31st December 2013. The accounts to 31st December 2013 listed assets as £2 – the original share capital. However, the accounts to 31st December 2014 listed stocks for 2013 as £100,000.... presumably the £100K shares belonging to Robert Hawes as listed on the annual return to 9.12.14 filed on 21.7.2015.

Balance sheet 31.12.13: current assets £2

 Balance sheet 31.12.14 – stocks (2013) £100,000

On 1st November 2014 Robert Hawes (DOB: May 1967) was appointed a director of Penketh Developments Ltd. However, this appointment wasn't filed at Companies House until 21st July 2015. On 21st April 2015 a First Gazette for a compulsory strike off was issued. This was lifted on 22nd July 2015 once the annual return to 9.12.14 was filed on 21.7.15. On 11.6.2015 the registered office was changed to Unit 9, 3 Warstone Lane, Hockley, Birmingham B18 6JE, where the company's activity was apparently 'Buying and selling of own real estate'.  

Balance sheet to 31.12.2014
Current stocks in the first year of trading starting presumably on 1st November 2014 when Robert Hawes was appointed a director taking over from the company formation agents were listed as £1,907,540 with total assets less current liabilities as £2,040,722. Total net assets including liabilities were £1,161,234. It looks like Robert Hawes, described as sales director, should be congratulated on a remarkable achievement on only just two months (November and December) of trading. The accounts are unaudited as under UK company there is no requirement for small companies to have their accounts audited. 

Change of directors     
Despite Hawes admirable success during the company's first two months of trading, he resigned as a director on 5th January 2015, although his resignation wasn't filed at Companies House until 23rd December 2015. Hawes was replaced by David Hinsworth (DOB: 1.1973) appointed on 4th January 2015, although the paperwork wasn't received by Companies House until 6th December 2015. Hawes transferred the £100k worth of shares to Hinsworth on 5th January 2015. 

Accounts to 31st December 2015
In the company's (Penketh Developments Ltd) first full year of trading to 31st December 2015 Hinsworth has continued Hawes' remarkable success. Total net assets are given as £2,073,962 against £1,161,234 to 31st December 2014.
  

Global Escrow Exchange – claiming to have clients' assets from Encarta Fine Wines'

Message from TB:

'I received a call yesterday and again about 10 minutes ago from a one Mr.Alan Accott who says he is with “GLOBAL ESCROW EXCHANGE”, their registered Office in Harrow and Trading Office in Central London. They have a telephone number 020-7310 8461, and another one 0304-2398.

I was one of the customers at Encarta Wines (now in liquidation) and these guys maintain my wine portfolio was sold and is now held in “Escrow”. The figure they say is being held is £64,644.39 and to receive this money I have to pay £3,232.06 “holding fees”.'

 

Global Esrow Exchange is not a UK registered company. Its contact address is 27-28 Clements Lane, London EC4N 7AE. This is a Regus serviced office and meeting room block in the City of London.  

Global Escrow Exchange claim: 'we are dedicated to providing quality service and personal attention to each customer. Asset transactions require a tremendous amount of technical experience and knowledge. Our staff has gone through extensive training to manage the finite details and to ensure a successful closing. Since opening our doors over 60 years ago, our financial strength is unmatched and we've become the UK's leading provider of escrow and settlement services. Selecting the right escrow and settlement company is essential to the success of your asset closing. We are the single best source of all your escrow and settlement needs and look forward to working with you. 

Rather curiously for a company that 'opened its doors over 60 years ago', Global Escrow Exchange only registered their website on 19th May 2016 – see below. I spoke to Carol Hooper of Abbott Fielding, who are the liquidators for Encarta Fine Wines Ltd. She had never heard of Global Escrow Exchange.....

TB decided not to send £3,232.06 in holding fees to Global Escrow Exchange. Instead they have contacted Action Fraud. Clearly TB wasn't convinced by Global Escrow Exchange despite receiving a Barclays bank giro credit slip showing £64,645.39 and a Deposit Account Statement on an Excel file. 

I have to agree with TB. Also I have to wonder whether this escrow company doesn't come under the remit of The Financial Conduct Authority (FCA)? 

Update: 20th November 2016
Global Escrow Exchange has indeed come to the attention of the FCA, who issued a warning against this company on 16th September 2016.

FCA: 
'We believe this firm has been providing financial services or products in the UK without our authorisation. Find out why to be especially wary of dealing with this unauthorised firm and how to protect yourself from scammers.' 16.9.16

You have been warned!