Radio 5 investigates diamond scams

Diamond investment scams are covered by Adrian Goldberg this morning on 5 live Investigates on Radio 5 Live. Vulnerable, elderly people conned by high pressure boiler room sales tactics to invest in either over-priced diamonds or diamonds that do not actually exist. programme warns that it is very difficult to establish the value of diamonds as many of the trades are done privately – 'value guesswork'. 

Adrian Goldberg speaks to the son of a man in his 70s, who has recently been diagnosed with Alzheimer's, who invested around £90,000 in diamonds following frequent calls and receiving some professional looking brochures. Unfortunately the son has not been able to trace the diamonds as yet.  

Ex-diamond broker tells of 'sucker lists'. Brief mention of links with wine investment. Includes an interview with Detective Inspector Matthew Bradford of the City of London Police, who warns that these scams/frauds are run by organised criminals.

Previous report on diamond scams here on investdrinks and one diamond investment company I wouldn't consider using. Also received warnings about Oakley & Forbes Management Ltd and Fanrong International. 

Bordeaux Fine Wines Ltd: taxman also looking to close company + Mirror story

Andrew Penman's story: 9th January 2014

Along with the Insolvency Service HM Revenue and Customs are also petitioning to close down Bordeaux Fine Wines Ltd. Their petition was published in the London Gazette on Thursday 9th January 2014. Part of the HMRC petition:

Notice: 1971742 (Issue: 60748)

Date: 9 January 2014

Issue Number: 60748

Page number: 381

Publication Date: Thursday, 9 January 2014

Notice Code: 2450

Petitions to Wind Up (Companies)

In the High Court of Justice (Chancery Division)

Companies Court   No 8692 of 2013

In the Matter of BORDEAUX FINE WINES LIMITED

(Company Number 06701468) and in the Matter of the Insolvency Act 1986

A Petition to wind up the above-named Company, Registration Number 06701468, of Abbey Orchard Street, London, SW1P 2HT formerly of Imperial House, North Street, Bromley, Kent, BR1 1SD, presented on 9 December 2013 by the Commissioners for HM Revenue and Customs, of Bush House, Strand, London, WC2B 4RD, claiming to be Creditors of the Company, will be heard at the Royal Courts of Justice, 7 Rolls Buildings, Fetter Lane, London EC4A 1NL, on 3 February 2014*, at 1030 hours (or as soon thereafter as the Petition can be heard). 

The Insolvency Service's petition to close Bordeaux Fine Wines Ltd in the public interest is due to be heard on 26th February 2013. 

The full announcement in the London Gazette can be read here. 

It remains to be seen whether Ken Gundlach, the company's sole director, will contest these petitions. It would, however, not be a surprise if they are not contested as Gundlach is in the process of closing down a number of his companies.   

* Update: The petition by HMRC to wind up Bordeaux Fine Wines Ltd has been put back to 3rd March 2014. If the Insolvency Service's petition to wind up the company in the public interest succeeds on 26th February then HMRC's petition will not need to be heard.  

•••

Andrew Penman 'race-stopped' Ken Gundlach at Lingfield Racecourse to ask him about a Mirror reader's expensive wine bought from Bordeaux Fine Wines Ltd. The reader had sunk his life savings in these wines supposedly stored at London City Bond. Unfortunately there is no sign of them at LCB. 

Nor, apparently, is there any sign of 10 cases bought by a middle aged woman who also sunk a substantial part of her life savings in wine from Bordeaux Fine Wines Ltd. She bought 28 cases in all but there are only 18 of them at London City Bond with 10 missing. 

Another client of BFW's is concerned about his en primeur purchases. 

It is not known whether these are isolated examples or whether Ken Gundlach's Bordeaux Fine Wines Ltd failed to buy a significant proportion of its clients' wine. If it transpires that there are many wines missing, then given that BFW's turnover was very close to £20 million (£4.9m dividend to sole shareholder – K. Gundlach) there ought to be a police investigation. Furthermore given the company's turnover BFW comes under the remit of the Serious Fraud Office.    

     

FCA warns on Graphene investments + Mayfair Worldwide Trading Ltd

Logo of the Financial Conduct Authority

The FCA (Financial Conduct Authority) issued a warning on 30th December 2013 about graphene investments:

'Graphene

Published: 30/12/2013   Last Modified : 02/01/2014

We are concerned about investments involving a man-made material called graphene. Find out more and how to protect yourself.

We are receiving many reports from people who have been offered investments in graphene, which is a type of carbon that may one day be used in display screens, electrical circuits and batteries. 

Why are we concerned?

We first uncovered this issue when we found evidence of a 'graphene investment firm' on the computers of a suspected boiler room. So we believe that the same firms that have sold other high risk, dubious products such as carbon credits, rare earth metals and overseas land and crops, are now trying to sell graphene.'

The full warning from the FCA is at the end of this post. 

•••

Mayfair Worldwide Trading Ltd

The FCA warning is very timely as just before Christmas a putative client of Mayfair Worldwide Trading Ltd passed me a contract from the company. The contract was an agreement to exchange wine for graphene:

Mayfair were kindly offering to exchange a half case (6 bottles) of 2006 Lafite Rothschild and a full case of 1996 Léoville Las Cases worth around £4800-£5000 for £6800 worth of graphene. Mayfair explain that: 

'At Mayfair Worldwide Trading Limited we have introduced an Asset Exchange program renowned within the city of London. We are currently undergoing a multi-million pound asset exchange program to innovatively get investors out of their under-performing assets with ease and efficiency.' 

I may be risk averse but if I had some 1996 Léoville and 2006 Lafite I would hang onto the wine, even though top Bordeaux has not performed well over the last couple of years. See Liv-ex blog here and Decanter here. Past experience suggests that in time the prices of these wines will increase and that wine should be seen as a medium to long term investment. So why would I want to take the risk with graphene even though Mayfair Worldwide Trading Ltd are kindly offering to exchange £6800 'worth' of graphene for wine worth less than £5000?

What in any case would I do with £6800 worth of graphene? Who would want it? The FCA point out that: 'Manufacturing companies that use the metals almost always buy them in very large quantities, making it highly unlikely they will deal with small independent retail consumers.'

Mayfair Worldwide Trading Ltd

Trusted Worldwide

What of Mayfair Worldwide Trading Ltd? Their glossy website claims that they are 'trusted worldwide' and that:

'With the combined knowledge and experience of our dedicated team of advisers, wealth managers and analysts we believe that we are the market leaders within the commodity sectors, we have an array of products ranging from Gold and Oil to Diamonds and Graphene.

We believe client relationship is key and that is the main cornerstone of our business, we work with many institutions and individuals to always ensure we are setting the highest standards possible.

For all of your alternative investment needs look no further than what our services can provide, our advisors are here from Monday to Friday to fully consult to your investment needs.' 

For a company that was only founded on 14th August 2013 to have become  'trusted worldwide' in less than five months and to be 'the market leaders' is a truly remarkable achievement! The genius running this company is 32-year-old Adam Edwards – amazingly for someone so talented this is his first directorship. 

Under the heading 'Risk Warning' Mayfair Worldwide Trading Ltd warn that 'The information contained in this website is not intended to constitute and should not be construed as, investment advice. Wise words from Adam Edwards, which I'm pleased to say the putative investor heeded and decided to hang onto his wines and not transfer them to Mayfair Worldwide Trading Ltd's account. His wines had been purchased from European Fine Wines Ltd and he had told them that he wanted to sell them.

I shall heed Adam Edwards' warning and steer clear of his Mayfair Worldwide Trading Ltd as his company is not qualified to offer investment advice. Nor are they registered with the FCA, so no protection from the Financial Services Compensation Scheme.  

•••

  

The FCA's Graphene warning in full:  

'Graphene

Published: 30/12/2013   Last Modified : 02/01/2014

We are concerned about investments involving a man-made material called graphene. Find out more and how to protect yourself.

We are receiving many reports from people who have been offered investments in graphene, which is a type of carbon that may one day be used in display screens, electrical circuits and batteries. 

Why are we concerned?

We first uncovered this issue when we found evidence of a 'graphene investment firm' on the computers of a suspected boiler room. So we believe that the same firms that have sold other high risk, dubious products such as carbon credits, rare earth metals and overseas land and crops, are now trying to sell graphene.

Manufacturing companies that use the metals almost always buy them in very large quantities, making it highly unlikely they will deal with small independent retail consumers.

It has been reported to us that callers promoting investments in graphene are using dubious, high-pressure sales tactics and targeting vulnerable consumers. There is a strong possibility of fraud with graphene because it is unregulated and it is difficult to confirm that you have bought the genuine product.

Protection when investing 
Remember: if it sounds too good to be true, it probably is!

Most firms promoting and selling investments graphene are not authorised by us. We strongly advise you to only deal with financial services firms that are authorised by us, and check our Register to ensure they are.

If you buy an investment product from a firm that is not authorised by us, you will not have access to the Financial Ombudsman Service (ombudsman service) or Financial Services Compensation Scheme (FSCS) if things go wrong.

This also means you will not be able to take your case to the ombudsman service or FSCS if you cannot sell or trade your investment in rare earth metals.

You should also search our list of unauthorised firms to avoid doing business with, although the names of the firms are likely to change regularly.

There are more steps you can take to keep your savings safe – find out how to protect yourself from investment scams.

You can also find out what to do if you think you have been scammed.

http://www.fca.org.uk/consumers/scams/what-to-do-if-you-are-scammed