FCF Wine Investments – ludicrously optimistic projections on over-priced wines.

 FCF's lipsmacking profit projection on 2010 Duhard Milon 

£11,553.03 net profit in four years!!

 

 

I was recently contacted by TG, a putative investor with FCF Investments. This is the trading name of FCF Associates Ltd. The company was founded 10.102011 and has two directors: 38-year-old Matthew Simon Guy and 34-year-old Steven David Carruthers. The company's share capital is £2 – split equally between the two directors. Their trading address is a serviced office in Knutsford. FCF produces ludicrously optimistic projections based on over-priced wines with a 15% service charge! 

FCF Investments sent TG an example 'of the returns you can achieve' enclosing the above chart 'showing the predicted returns for the Duhart Milon Rothschild 2010 over a 4 year investment period. This is calculated based on a 25% increase in value per year (the returns typically experienced over the last 10 years on comparable vintages.' 

This really is flying pig territory especially as FCF Investments sell their wines at a considerably higher price than can be found elsewhere and charge a 15% service charge (10% on purchase, 5% on sale) – presumably for their expertise in overcharging. 

FCF Investments propose to charge TG £1089 for a case of 2010 Duhart Milon (£990 per case plus 10% service charge). However, a quick shop around on wine-searcher.com shows that a case (12 bottles) of the 2010 Duhart Millon can be bought for £600 a case from both Ditton Wine Traders and Seckford Wines – an immediate saving of £489 a case. As FCF Investments told TG he should buy 10 cases this is a saving of £4890!

FCF's projections have no basis in reality as Bordeaux prices have fallen considerably since 2011. For a look at the real world of fine wine prices and their movments see http://www.bordeauxindex.com/market.php as well as the Liv-ex indices.

FCF's advice on tax liabilities is also wrong. Bordeaux First Growths bought when young from good vintages are unlikely to qualify as 'wasting assets'. FCF claims that wine for inheritance tax 'is valued at acquisition cost, not current value'. This is incorrect it is assessed at 'current value'. of course given FCF Investments' high price policy this may be an unexpected advantage!    

If the fine wine market was really buoyant and a sure-fire source of profits, it is unlikely that we would have seen the collapse of several wine funds over the past year including Nobles Crus, Vintage Wine Fund and, most recently, The Bordeaux Fund. The latter reported by Wealth Manager (City Wire) to have lost 58% since its launch in 2008.   

Fortunately TG declined FCF Investments kind offer of over-priced wine investments. I suggest you do the same. 

 

White Knights - a renewed warning

Investors in the failed wine investment company, The London Vines Ltd, continue to be approached by White Knights offering to assist. A recent example is Elliott House Collections Ltd (Company number: 08352626) offering to exchange investors wine for art. Doubtless these exchange offers are kindly meant but I would certainly decline them. 

Elliott House Collections Ltd was set up on the 9th january 2013. Its registered and trading address is 68 King William Street, London EC4N 7DZ – a well known accommodation address. The company's sole director is is 26 year old Harry James Downer. 

Other companies offering assistance include One Vine Day, Vine Capital and Woolf Sung. If I was an investor with The London Vines Ltd I would decline their offers and propositions as well.   

•••

Barry Gamble

The many friends of Mr Gamble will no doubt be delighted to learn that he has apparently added recently a large extension to his house. It is also rumoured that he may be facing personal bankruptcy. Apparently the house in the joint names of Gamble and his wife.    

Gamble was a director of The London Vines Ltd from 26 January 2010 to 9th April 2013. The company went into liquidation on 12th November 2013. A number of investors have been unable to locate their wine.

Bordeaux Fine Wines Ltd – appointment of liquidator

It seems very likely that Bordeaux Fine Wines Ltd will be put into full liquidation on 26th February 2014 when the Insolvency Service's petition is due to be heard in the High Court.

I am happy to put up the following message from Grant Thornton UK LLP, who have been asked to act as liquidators with David Ingram, acting as liquidator, if the provisional liquidation is confirmed. 

I am also prepared to put up similar notices from any other companies wishing to be appointed as liquidators to Bordeaux Fine Wines Ltd.

••

Message from Grant Thornton to creditors of Bordeaux Fine Wines Ltd:

URGENT ACTION REQUIREDBordeaux Fine Wines Ltd (“BFW”), a company that sold wine to investors, was put into provisional liquidation by the High Court in the public interest on 19 December 2013, following an investigation by the Insolvency Service.

The Official Receiver is acting as provisional liquidator with a hearing set for 26 February 2014 to place the company into formal compulsory liquidation. It is at this point that an Insolvency Practitioner may be appointed to act as Liquidator to investigate the financial affairs of the company and seek to maximise the potential return to creditors.

Should BFW be placed into liquidation at the hearing HMRC wish to request David Ingram, who is a partner in The Fraud Insolvency Division (FInD) at Grant Thornton UK LLP, to act as Liquidator.

Should you be a creditor having previously purchased wine through BFW and wish to know how Grant Thornton UK LLP can represent your interests in this matter please do contact Samantha Street, a manager at Grant Thornton, at samantha.j.street@uk.gt.com or alternatively 0207 728 2651.

Grant Thornton have successfully dealt with a number of wine investment companies making good recoveries for investors noting there will be no charge to investors in making a nomination for David Ingram to be appointed to act.

FInD specialise in tracing and recovering assets and are a national team together with an international reach with a presence in all offshore financial centres. They have recovered assets from many jurisdictions and are currently successfully recovering monies for victims of various investment scams, including off plan property developments, mortgage fraud and boiler room fraud, in the UK, Spain, Caribbean, USA, the Middle East and other overseas jurisdictions.

For further information regarding Grant Thornton's insolvency investigation services please visit http://www.grant-thornton.co.uk/en/Services/Recovery--Reorganisation/Fraud-Insolvency-Division-FInD/