Barry Gamble (The London Vines Ltd) made indefinitely bankrupt

 Barry Michael Gamble – bankruptcy report

As 2016 draws to a close I am sure that Barry Gamble's many friends and fervent admirers, who may include Emma and Katie, will appreciate an update, especially as the liquidator's latest report to 30.10.16 is available here.

Although Gamble was made bankrupt at Croydon County Court on 8th December 2015, his bankruptcy wasn't confirmed until 2nd June 2016 as Gamble appealed to the court claiming that the bankruptcy order should not have been made. Fortunately Gamble's delaying tactics failed – the order arose from the misfeasance action brought by solicitors acting for the liquidator of The London Vines Ltd. In the latter half of 2015 Gamble was fined by default £741,647.45. 

The UK bankruptcy register shows that Gamble's bankruptcy, which would normally have ended on 8th December 2016, has been extended indefinitely – 'Order suspending bankrupt’s discharge under Section 279(3) of the Insolvency Act 1986 until the fulfillment of conditions as specified in the Order made by the Court and effective from 29 November 2016'. I will report on these conditions if and when I have the details.

Given the successful misfeasance claim – taking money out of The London Vines Ltd without proper justification – Gamble should have been banned as a UK director. That this wasn't pursued may well be down to Government cuts in The Insolvency Service. Anyway Gamble's continued bankruptcy precludes him from being a UK director.  

There is potential further bad news for the Gamble household. Amanda Gamble, Barry's wife, may well also be made bankrupt early in 2017 as reported in the Liquidator's report from 31st October 2015 to 30th October 2016. 'A Statutory Demand was personally served on Mrs Gamble on 22nd October 2016 and accordingly, Mrs Gamble has until 09 November 2016 to apply to the Court to have the Demand set aside and we will be able to present a Bankruptcy Petition from 14 November 2016.' It seems that Amanda Gamble is yet to be made bankrupt as her name does not yet appear on the bankruptcy register.  

According to the liquidator's latest report: 'Barry Gamble claimed that all of the net sale proceeds from the property at 6 Rowan Close (Banstead) were paid to his wife Amanda Gamble'.   

Sadly I suspect that few will be surprised to learn that it is very unlikely that any of the clients and investors with The London Vines Ltd will get any of the £1.63 million claimed to be owing. 
      

Gamble made an appearance here in the Mirror back in February 2016. 

Barry Gamble's libel case

In December 2014 Barry Gamble decided to sue me in the High Court for libel and slander. Essentially, despite the misfeasance judgment, Gamble claimed to be an honest businessman. 

Gamble based much of his case and claim on a company called ESW Exports (UK) Ltd, which supposedly had experience and expertise in exporting English sparkling wine. Central to Gamble's legal claim was that he had personally lost a contract with a Toronto based Canadian wine importer worth £80,000.

This contract, of course, was pure fantasy and the whole case an abuse of legal process. There never was a contract with the Canadian importer. It took Gamble some nine months to come up with the name of the importer who, when I contacted him in November 2015, told me:  

'I took the time to go through my records to determine whether I had any contact with Mr. Gamble as his name and company did not ring a bell.  I deal with dozens of suppliers every year and many of our contacts do not result in any business. I did find some e-mail correspondence with him in 2013 where I informed him of some upcoming opportunities for sparkling wines with our monopoly, the LCBO. He sent me information about one Italian sparkling wine which was priced outrageously with no hope of ever being purchased. I reached out to him again a few months later regarding another opportunity and he did not respond so I closed my file. I have never heard from him since.'

Gamble was not a director or shareholder of ESW Exports (UK) Ltd – he never explained why he would have personally benefitted from the fantasy £80,000 contract. ESW Exports (UK) Ltd was established on 16th August 2012. It was struck off on 21st October 2014 for non-compliance – no annual returns of accounts were filed.  

In 2012 Gamble did make contact with a number of English sparkling wine producers. One of them – Sam Lindo of the excellent Camel Valley  – was not impressed:

'I have only come across these guys from them enquiring about exporting our wine.  They sound like a bunch of nutters. I told them their website made them look like a con, it showed a total lack of knowledge of our industry, in particular how small it is. The chap missed the joke I made about only using Western Union money transfers.

Some of these people can be genuine, we make everyone pay up front for the first 2 orders and this stops any chancers.' 
 

Good to go: 

On 9th August 2012 Gamble emailed a number of English sparkling wine producers claiming to have 'importers/agents in the major citys (sic) in China and India' and that 'Myself and my newly formed export company ESW Exports Ltd are taking English sparkling wine to the other side of the planet'.

'Hi Guys,

 

As your more than likely aware, English sparkling wine has a reputation rarely surpassed.  In fact so popular is the wine of our fair land that overseas they cant get enough actually they cant get any, Myself and my newly formed export company ESW Exports LTD are taking English sparkling wine to the other side of the planet..

 

With a handful of importers/agents in the major citys in China and India good to go all we need is the wine..

 

So I write this email in hope that we can spread the word with gusto, we would look to purchase at least 100 cases of sparkling wine in various forms from as many vineyards as possible, of course if the wines are award winning in some way then all the better..

 

All monies for your wines will of course be paid up front and we would look to build from there..

 

Feel free to get in contact with myself on the number below or reply to this email at your earliest convenience..

 

Many Thanks

Barry Gamble'

Gamble's claim of 'importers/agents' in China and India is also likely to have been a complete fantasy. Interestingly no mention here of a Canadian importer....

Shortly before Gamble was made bankrupt at Croydon Court, he made an offer of settlement, which included a demand for £3000 to cover his legal costs. Gamble never received a penny. Once a liquidator was appointed in respect of Gamble's personal bankruptcy, they discontinued the legal action since bankrupt Gamble was not in a position to pursue this case.   

  

 

 

  

The London Vines Ltd: the Liquidator's second report – deficit claims total £1.6 million

 

Screen shots from The London Wines Ltd website

The second report (1st November 2014 to 31st October 2015) from Findlay James, the liquidator of The London Vines, is now available. Although surprisingly poorly punctuated, it makes very interesting reading it makes unless you happen to be one of the unfortunate creditors, who may be left with nothing.

Of particular interest is section 3:
'ASSET REALISATIONS Misfeasance Claim
At the time of the last report, the liquidator had made an application to court for a charging order in the sum of £741,647.45*: An application was made to court for a charging order to be placed against the matrimonial property of both Barry and Amanda Gamble however the courts failed to apply the order prior to the Gambles selling the property. A judgment in default was made against Amanda Gamble in the sum of £179,236.61.

Further investigations into Barry Gamble's affairs showed that he owned an investment apartment in London. Ann application to court was obtained for a charging order in respect of the property. A charging order was duly obtained. 

The Liquidator presented a bankruptcy petition against Barry Gamble however Mr Gamble made a number of attempts to set aside the petition. Unfortunately a Bankruptcy Order has not yet be made against Mr Gamble.** A process server attended Mr Gamble's residential address on 04 September 2015 with a view to personally serving a copy of the sealed Petition together with the Order of Judge Bishop, which adjourned the Petition hearing to 13 October 2015. The process server was unable to effect personal service and produced a Statement of Non-Service.

In the light of the above, we instructed an agent to attend the hearing of 13th October 2015 to obtain a further adjournment which would allow us time to make an application to the court for a substituted service of the Petition. However the District Judge was content to make an Order for substituted service at the hearing and ordered that service of the sealed Petition together with a sealed copy of his Order by first class pre-paid post would be deemed good and sufficient service on the seventh day after posting. Accordingly, on 16 October 2015, a sealed copy of the Petition was duly posted to Mr Gamble and will have been deemed to be served 27 October 2015. The Bankruptcy hearing return date is listed for 08 December 2015 at 11.30 and a Bankruptcy Order will be sought at the return hearing.** 

A settlement was reached last year with Robert and Sylwia Phillips whereby it was agreed that £90,000 would be paid by 19 January 2015. It was intended that they would release funds by way of a re-mortgage of the matrimonial property. The due date passed and the funds were not paid. Further negotiations ensued and it was agreed that the Liquidator would accept £71,000 in full settlement of all claims against both Robert & Sylwia Phillips. Funds were received on 29 January 2015. The reason that the Liquidator accepted the figure was that these funds were being raised by family assistance and that if we did not accept; it was likely that Robert Phillips would present his own bankruptcy petition as he was unable to raise funds on his property.'

Other aspects of the second report: 

No preferential creditor claims as 'There were no known formal employees of the company'.

The Company banked with Lloyds Bank PlC. 'The bank account was closed with a credit balance and as such the bank isn't a creditor.'

'Trade and Expense Creditors

The director's estimated statement of affairs at the outset of the liquidation provided the level of unsecured trade and expense creditor claims to be £458,580.38. This figure is comprised mainly of customers who had contacted Findlay James as they heard through third parties that the company was in financial difficulties and had contacted Private Reserves/Octavian in order to establish whether wine which they believed that they owned was actually being held by them. £458,580.38 was the quantum of the claims submitted prior to our appointment as Liquidator.

Following our appointment it became apparent that there would be many customers who did not know that the company was in liquidation. Due to the fact that there were no electronic customer records, all of the contact details from paper invoices and correspondence were logged onto our systems. Notices were sent to all known customers of the London Vines. The sending of this notice generated a large volume of written and telephone enquiries from worried customers who were asked to contact Private Reserves in the first instance to establish whether their wine portfolios were stored with them. At the date covered Findlay James had received claims of £1,636,441.73 from trade and expense creditors, the majority of which are The London Vines Limited Customers.'

Bad news for creditors:
'6. Dividend Prospects

Based on present information, it is unlikely that there will be sufficient funds available to enable me to declare a dividend to any class of creditor in this matter. The position may change once a bankruptcy order (**) is made against Mr Barry Gamble. A Trustee will investigate what happened to the funds from the sale of the matrimonial property. It will also be considered following the outcome of Barry Gamble's bankruptcy if it is also worthwhile presenting bankruptcy proceedings against Amanda Gamble.'         

8. Conclusion of the Liquidation
The Liquidation cannot yet be brought to a close until matters against the Directors and shareholders have been finalised. As explained in the report we are still waiting to bankrupt Mr Barry Gamble and ascertain whether he has any assets which can be personally recovered from him. If there is success in recovering funds from him, the Liquidator will consider whether there is scope to issue bankruptcy proceeding against Amanda Gamble too.' 

* In his first report (17th December 2014) the Liquidator reported that they had obtained a default judgment against Barry Gamble for £741,647.45.

**  This has now happened. At a hearing on 8th December 2015 at Croydon Court, Barry Gamble was made personally bankrupt.  

Report on Barry Gamble's personal bankruptcy here. 

Unfortunately as usual the only people who appear to have made money out of the liquidation of The London Vines Ltd are the liquidators and the lawyers. Clearly liquidators and lawyers have to be paid for their work but it does seem wrong that the creditors are likely end up with nothing.  

Barry Gamble declared bankrupt – Croydon Court Tuesday 8th December 2015

Above: Tuesday 8th December 2015 Court listing at Croydon County Court and the Family Court for five-minute hearing of a creditor's petition against Barry Gamble at 11.30 am.

Discharge suspended – an error

 Automatic discharge: 08 December 2016

The result: Barry Michael Gamble of Tadworth (last known address) declared bankrupt with his discharge suspended.  

Although not confirmed Barry Gamble's bankruptcy is a result of the successful Misfeasance Claim brought by solicitors acting for Findlay James, the liquidator of The London Vines Ltd, a failed wine investment company. Barry Gamble was the sole director of The London Vines Ltd (appointed 26.1.2010 – resigned 9.4.2013) for much of its life. Alisdair Findlay of Findlay James was appointed on liquidator of The London Vines Ltd on 31st October 2013. 

In the first Liquidator's report (17.12.2014) Findlay reported that:

'Following an analysis of the company bank statements  for the period 1 February to the date of liquidation it was discovered that large sums of money had been paid to the shareholders and relatives of shareholders for which there were no records to substantiate the payments. Despite writing to each of the individuals involved, none were able to provide satisfactory responses and as such I instructed solicitors to commence recovery proceedings. A claim was drafted against Barry Michael Gamble, Robert Scott Phillips, Amanda Sarah Gamble, Sylwia Phillips, and David Phillips. An offer of £27,000 was made and accepted in respect of the claim against David Philiips in the sum of £33,776.'

'A judgement in default was obtained against Barry Gamble in the sum of £741,647.45.'

Interestingly on 3rd June 2015 Gamble described the liquidation of The London Vines and the Misfeasance Claim as fraudulent: 'regarding the fraudulent insolvency of The London Vines and subsequent fraudulent and false claim'.

Gamble put this view to the test on 17th September in Birmingham seeking to  to have the default judgment overturned. He failed, so English Law confirmed the Misfeasance in the running of the company – in common parlance the 'removal of large sums of money' from The London Vines Ltd by its directors and shareholders with 'no records to substantiate the payments' and with no satisfactory explanations indicates that this was a scam. Now this has led to Barry Michael Gamble's bankruptcy (8th December 2015). 

The Liquidator's December 2014 report also stated that: 'We are still awaiting confirmation from the Court of Judgment in default against Amanda Gamble in the sum of £179,263.61.' It is not known what the current status of this potential judgment against Amanda Gamble is. The Liquidator's second report due by the end of this year may shed more light. 

I understand from Barry Gamble that he is appealing against the default judgment.