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!

    

 

Encarta Fine Wines Ltd into liquidation: frozen bank facilities blamed

Canary Wharf – getting a reputation for scams  

Yet another wine investment company, Encarta Fine Wines Ltd, has just gone into voluntary liquidation with sums due to creditors estimated at between £3.5 to £3.8 million. The creditors’ meeting was held today at the Marriott Hotel in Bexleyheath, London.

Encarta has around £1.7 million worth of stock held at London City Bond, which is estimated to realise about £1.3 million. The pay out to unsecured creditors is estimated to be in the region of 25p-30p in the pound.

Encarta was set up in July 2009 with 35-year-old Dean Doughty and 39-year-old Matthew Hart as directors.

The liquidator, Nedim Ailyan of Abbott Fielding, says that the directors have blamed the collapse on their bank, HSBC, freezing their banking facilities for four months.

Ailyan said: “Because of concerns about the level of commodity fraud I believe that the Financial Conduct Authority has been asking banks to investigate commodity asset investment companies that might have suspicious transactions. Although I have already seen this happen with companies selling other commodities, this is the first time this is said to have happened to a wine investment company.”

It is thought that Encarta’s banking facilities were frozen earlier this year and were then unfrozen once the four-month investigation was completed. It is not known whether Encarta continued to trade while their banking facilities were frozen .

(More to follow)

 

•

Abbott Fielding are currently handling the liquidation of several wine investment companies including Canary Wharf Vintners Ltd, which went into liquidation on 23^rd July.

Formed in May 2006 the company changed its name from Strategic Land Acquisitions Ltd in September 2010 to Canary Wharf Vintners. The sole director is 55-year-old Enver Deen.

The deficit is thought to be less than £500,000 with only some 20 creditors. The major creditor is an elderly woman, who is owed some £200,000. She is believed to have been caught by a number of other wine investment firms and subjected to repeated hard-sales tactics.

Deen is currently offering wine investments as well as art, diamonds, land and metals through Belgravia Alternative Assets Ltd. He is the sole director.   

 

Encarta Fine Wines Ltd – another bust wine investment company

The website is still up but Encarta is bust

Encarta Fine Wines Ltd is latest wine investment company to be going into voluntary liquidation. It follows in the footsteps of Canary Wharf Vintners Ltd (sole director Enver Deen or a variation on this name) and European Fine Wines Ltd. The creditors' meeting will be on 12th August@the Marriott Hotel in Bexleyheath. The arrangements are being organised by Abbott Fielding Ltd.

The deficit is not known at present nor whether all the investors received their wine.

More to follow.   

As European Fine Wines goes into liquidation debts hit £2 million

Premises of European Fine Wines Ltd in Bromley

At the creditors' meeting on 25th June 2014 held in Bexleyheath, South London, Abbott Fielding Ltd were appointed liquidators for European Fine Wines Ltd, a wine investment company based in Bromley and founded in 2005.

Debts originally thought to be between £500,000 to £1 million have now climbed to £2 million. In their nine years of operation EFW turned over £80 million in wine.

Nedim Ailyan, the Insolvency Practitioner at Abbott Fielding Ltd, said: "We were told the debts were less than one million. However, once we were able to look at the books, we saw that the debt was actually £3 million against assets of £1 million - mainly wine.'

According to Ailyan a major factor in the company's collapse was their decision to set up an office in Hong Kong. "They sank £1 million into this gamble. Unlikely companies like Farr Vintners, who have successfully set up branches in Hong Kong, EFW did not have the specialist staff or the contacts necessary to succeed."

Abbott Fielding will be investigating how far the Hong Kong adventure was funded by investors' funds intended to buy wine.

"It is all right to gamble but not with other people's money," added Aiylan.

It is still unclear how much wine was not bought as I am getting reports from investors that some of their wines are missing. 

••

Encarta Fine Wines Ltd: also ceased trading?

 'Encarta Investment Group was founded in 2006..

down to earth, friendly and helpful fine wine investment company'  

Encarta website no longer found

Yet another 'wine investment' company may have ceased trading as the Encarta Fine Wines's website has disappeared.

Update: 7.7.2014 The Encarta website is now back up, although a phone call gets a recorded message.

Encarta Fine Wines Ltd: 'the worst case scenarios from our company' (part 2)

HM (see previous post) received a number of calls and emails from Encarta Fine Wines Ltd. One of them sent by Paul Stapleton, senior portfolio manager.

'Dear Investor

Thank you for your interest in our company. Attached is some additional information to keep you upto date with the sector and how it is progressing. Please find below the wines that we have in allocation which are a GREAT START, to a successful working portfolio. These allocations are flying out, so if you have any questions, queries or would like to add one of these to your portfolio, please email me or call my direct line.

I look forward to hearing from you.

 Kind Regards

Paul Stapleton
Senior Portfolio Manager

Encarta Fine Wines Ltd
Mayfair House
14-18 Heddon Street
Mayfair
London
W1B 4DA'

Stapleton illustrated his point with three wines: 2007 Léoville-las-Cases (Encarta price: £1500), 2005 Lynch-Bages (Encarta price: £1400) and 2006 Pichon-Lalande (Encarta price: £895). He claimed an compound annual growth rate of 14% for the Léoville, 13% – Lynch-Bages and 25% for the Pichon.

Remarkable rises and doubtless tempting! However, outside an 'exciting, faced paced broking environment staffed by  'driven, money motivated individuals' the reality is considerably less tempting. wine-searcher.com shows that in mid-June 2010, the 2007 Léoville-las-Cases could be bought for £795 from Robert Rolls  (8.6.09), Veblen Wines Ltd had the Lynch-Bages for £775 (10.6.10) and Interest in Wine Ltd had the Pichon at £635.

Encarta price for the three wines:                     £3795

Price if bought from cheapest merchant:           £2205
Difference                                                       £1590

Mr Stapleton's 'GREAT START': 72% more expensive.

Furthermore, Encarta's claims of the rise in price of these wines are meaningless and misleading. These percentages show, if they mean anything, only by how much Encarta has whacked up the prices in its short trading history.

 In reality wine-searcher shows that the Léoville fell by 10.6% from the lowest price available in June 2009, while the Lynch-Bages was up by 6.5% and the Pichon by 8.7%. Furthermore, prices for these three wines have dropped over the past month with the Léoville (£780: minus 10.7%), Lynch-Bages (£750: 3.3%) and Pichon (£620: 6.5%). 

   

The figures speak for themselves!

••

 Bromley based jobs with Encarta Fine Wines Ltd

Some extracts from a advert placed with WorkFinders network by Encarta: 

SALES/ BROKERS WANTED URGENTLY – CALLING ALL EXPERIENCED OPENERS & CLOSERS – £120K+ OTE

MUST BE BULLISH - MONEY MOTIVATED - RESOLUTE – HIGHLY DRIVEN AND VERY COMPETITIVE!

DON’T WASTE YOUR TIME IF YOU AREN’T A CLOSER, THIS JOB IS FOR WINNERS ONLY!

ONLY APPLY IF YOU HAVE EXPERIENCE IN SALES OR BROKING AND A DRIVE TO SUCCEED. 

•

 

WANTED: BULLISH PEOPLE WITH PASSION....................

We are seeking professional closers who can demonstrate a proven track record.

Unlimited earning potential with top performers earning on average over £10k per month, with prompt payment for you!

Now is the time to take advantage of the Wine investment market. 

•

Those with experience in stock broking, wine broking, land broking are ideal although if you have a strong sales background and are sharp on the phone, WE WANT TO HEAR FROM YOU!

WE NEED CLOSERS, BROKERS, AND SERIOUS SALESPEOPLE WHO WANT TO MAKE SERIOUS MONEY AND WHO AREN’T AFRAID TO ASK FOR THE MONEY!

YOUR EARNINGS ARE UNCAPPED AND YOU CAN MAKE £10K - £15K PER MONTH

•

Our young and energetic company, is based in the bromley*, with fantastic incentives on offer. We believe strongly in rewarding sales people who work hard and beat targets!

ROLE:

WORKING WITHIN A PHONE SALES ENVIRONMENT YOUR ROLE WILL INVOLVE:

• SPEAKING TO POTENTIAL INVESTORS AND INTRODUCING THE COMPANY AND THE CONCEPT OF WINE INVESTMENT

• NURTURING AND MAINTAINING RELATIONSHIPS

• CLOSING DEALS

Where to apply, inquire, or obtain further information

Dean Doughty

Tel: 08009707991

E-mail: investjob@hotmail.co.uk

 

Full advert is here.

 * If the company is based in Bromley why change the registered office trom Bromely to Heddon Street in Central London in October 2009 and give this as its contact address on the website? You would have thought that 'a good, down to earth, friendly and helpful fine wine investment company' would want its clients to know its trading address.  



 

Encarta Fine Wines Ltd: 'the worst case scenarios from our company' (part 1)

I have received a recent enquiry from HM about Encarta Fine Wines Ltd

HM

'I have been approached by Encarta Investment Group regarding investing in wines. They are offering 2009 Carruades de Lafite - Rothschild. Half a case for £2,200. They cold called me earlier this year.

I declined their offer then, but said I might be interested in the future. Since then I have received calls and emails.

My response

Encarta Fine Wines Ltd was set up on 9th July 2009 with Dean Doughty as the director and Lucy Damato as the company secretary. A further director, Matthew Hart, was appointed on the 19th August 2009. The company's website was registered on 5th October 2009. Its registered office is at Mayfair House, 14-18 Heddon Street, London W1B 4DA.

However, the Encarta Fine Wines' website explains that its origins were earlier than this:

'Encarta Investment Group was founded in 2006. When the company was formed, we believed that there was the need for a good, down to earth, friendly and helpful fine wine investment company offering a range of fine wines from Bordeaux. A sort of antidote to the increasing anonymity and sameness of the big chain stores. We have been rewarded in the enormous increase in wine investors and the resulting growth in demand for en premier first growths.'

Encarta Investment Group is not a limited company. Its address is Fox House, 135 High Street, Bromley BR1 1LF. There is one similarly named limited company in the Bromley area – Encarta Associates Ltd, which founded on 5th August 2009 at Imperial House, North Street, Bromley BR1 1SD. This was also the registered office of Encarta Fine Wines Ltd until 7th October 2009 when it was changed to Heddon Street.

However, the company would appear to trade from the Bromley as this just ad indicates:

'Encarta fine wines (London/South East) Full Time Tuesday, January 5th, 2010

Job Description:

We currently have full time investment broking vacancies in our team on the trade floor, this is available for driven, money motivated individuals with a passion for sales. Those with experience in stock broking, wine broking or land broking are ideal – although if you have a strong sales background and are sharp on the phone, we want to hear from you! with a basic salary and a strong ongoing commission structure, this is the perfect role for those looking to develop their sales career in an exciting, fast paced broking environment

This is not a job for those afraid of hard work, the job involves speaking to investors across the UK and IRELAND, no matter how wealthy! The hours are long, the job is tough & demanding, BUT the rewards can be tremendous!

hours 10.30-7.30pm

salary is 800pcm to begin with (comissions on top) with huge potential for promotion in a short period of time for the right candidate.

OTE 50,000 to 100,000 a year

Location: Bromley, Kent

Compensation: 800pcm

Telecommuting is ok.

Encarta Investment Group Address: Fox House
135 high st
Bromley - BR1 1JF
Kent

Contact: Dean'

Back in February in an exchange of emails Matthew Hart explained the company background:

'Encarta Fine Wines Ltd was registered with companies house in 2009, however has been sole trading since 2006 on very a small scale basis, but must also highlight a mistake* you have which is I am not the sole director, our prices are generally around 25% above the prices shown from some of the larger Merchants for example Farr Vintners, but within this increased price we include storage for up to 5 years**, and of course advice on purchasing.

We can resell to existing clients & potential new clients, portfolios of existing clients thus offering only a 5% selling commission. So I agree we may be more initially to purchase, but also offer investment advice for this service, but are less expensive to sell the portfolio.

I myself have been a lover of fine wine and have visited Bordeaux region wine tasting etc, as this is a passion of mine.'

My notes:
* Correct Dean Doughty is also a director
** Five years storage at LCB's Private Reserves is £71.91 inc vat.

2009 Carruades de Lafite - Rothschild

There is no doubt that the price of Carruades de Lafite has shot up in spectacular fashion over the past few years. In June 2006 you could have bought a case of 2005 Carruades for £335. Today the cheapest price on wine-searcher is £2600. This rise is entirely down to the Chinese affection for Lafite. and not through a re-evaluation of its intrinsic quality. Carruades is essentially the second wine of Château Lafite, although grapes from some parcels of vines that wouldn't go into the grand vin are included and it has a higher proportion of Merlot. In China it is apparently known as baby Lafite. All in all an example of a bubble that may or not not burst – hardly the sort of wine with which to start an investment portfolio. 


From the Encarta website:
'At Encarta we take great pride in helping our clients build the perfect investment portfolio of fine wine.'

 

'Our experts will help you source and choose the wines that represent good value.'

Encarta's price for six bottles of 2009 Carruades is £2200 (equivalent to £4400 for a case of 12).A quick look at wine-searcher.com shows that a number of companies are offering a full case (12 bottles) of Carruades at prices ranging from £2400 (Albany Vintners) to £2800 (Farr Vintners are at £2700). In this instance Encarta are a whopping 83% more expensive than the cheapest established fine wine merchant. Encarta: 'the wines that represent good value'!!

I emailed Matthew Hart asking about both the pricing and the choice of Carruades de Lafite as a starter wine for a portfolio. 

Matthew Hart's response (15.7.10): 

'You seem to pick the worst case scenarios from our company, In our opinion Carruades de lafite offers fantastic investment grade wine & returns.

What about the 2007 Lafite Rothschild that we are selling at present for £6000 are you willing to say that this is not competitive??

It seems to me that you have nothing better to do that contact us and keep checking up on our pricing structure!

I suggest you try and track down the scam companies out there that are not actually purchasing wines!!

I am sure one call to LCB and they will confirm that we have a constant stream of wine going into accounts held there.

I will not reply to any further emails that you send to us.'

My response:
Your price for 2007 Lafite is certainly more competitive than that quoted for 2009 Carruades. However, it is more expensive than any other companies currently quoted on wine-searcher.

It is also more competitive than than the example of growth sent out by Paul Stapleton on Tuesday, June 22, 2010 featuring 2007 Leoville Las Cases, 2005 Lynch-Bages and 2006 Pichon Lalande. All, particularly the Léoville las Cases and 2005 Lynch Bages well over market price.***

Although I could phone LCB and they might confirm that Encarta have an account with them, they are not going to tell me what is in the account nor what comes in and out, nor whether cases enter at a trickle or a flood. Incidentally when did Encarta open the account at LCB?
  
Naturally it is entirely up to you whether you respond to my questions. It remains proper that I give you the opportunity to respond.


*** I will be commenting on the example of growth sent out by Paul Stapleton in a separate post. See part 2 here.


My advice
Although they may have done a small amount before the company was founded in in July 2009, Encarta Fine Wines Ltd has no track record, particularly in relation to buying en primeur. I wouldn't advise buying en primeur from Encarta until they have established a track and trading record. Nor would I advise buying bottled wine from them until they become more competitive and cease trying to sell investments through cold calls.   

Cold callers busy this summer: The London Wine Shop and Bordeaux Fine Wines

Two very recent enquiries about people cold called about investment wines – one on behalf of The London Wine Shop, the other Bordeaux Fine Wines.

The London Wine Shop

DJ's enquiry:
'I have been contacted by The London Wine Shop offering to sell me a case of Chateau Latour 2004 for £4,800. Do you know anything about this company and in your considered opinion is it a sound investment? They cold called me.'

My response:

No buying at this price is not a sound investment as wine-searcher shows that you can buy the same wine for £3445 from Bordeaux Wine Investments and for £3500 from Wilkinson Vintners.

I wouldn't buy wine from The London Wine Shop.

DJ has also been contacted by Encarta Fine Wines Ltd, which was founded on 9th July 2009. Its registered office is in Heddon Street, Mayfair, London. Encarta trades from Bromley. They quoted £4,950 including transportation, 5 years storage and insurance for the 2004 Latour.

I wouldn't buy wine from Encarta Fine Wines Ltd either because of their lack of a track record and the price for the Latour is hardly competitive.

*

Bordeaux Fine Wines Ltd

TM's enquiry:
'I have been rung by Bordeaux Fine Wines Ltd" asking if I wish to invest. It sounds an attractive proposition, with their 10% commission on any profits sounding good. is this company bona fide do you know? They are asking me to buy Chateau Pavie 2008 at £1,750 a case en primeur. I have queried the price with them [by phone to the salesman] who tells me when I come to sell, the price will be based on the average increase in price for the wine sold in the market over the time I have held the wine. The Bordeaux Fine Wines Ltd do look after you by ringing every month to let you know how the wine is doing, and the recommend good buys etc, at least that's what they say [no doubt also opportunities for a hard sell too!]. '

My response:
If you look at www.wine-searcher.com you will see that you can buy 2008 Pavie for £1165 a case from Justerini & Brooks, part of Diageo, the world's largest wine and spirit company.

I can see no reason for paying well over the odds from Bordeaux Fine Wines that was only founded on 18th September 2009, especially as you are buying this en primeur and BFW has no track record in supplying wines en primeur.

You will find a list of merchants I would consider buying investment wines from on my investdrinks blog. Bordeaux Fine Wines isn't one of these.