Bordeaux Fine Wines Ltd

The High Court today made a compulsory order winding up Bordeaux Fine Wines Ltd. Edwin Coe LLP supported the liquidation on behalf of creditors owed in excess of £3 million and has been in discussion with the Official Receiver who was appointed Provisional Liquidator.

David Greene, partner of Edwin Coe LLP, said

“Representing creditors we are pleased to see that the court has made a compulsory order because this is a situation which needs investigating immediately. Creditors learnt for the first time the full details of the scam run by this company. Customers were paying the company money, 25% was paid in commission to salespeople who used false names in the sale process, but in many cases no wine was then bought. Indeed the court was told that the company was using the money to pay out other investors like a Ponzi scheme. Some of our clients have reported the matter to the police and the metropolitan police are investigating.”

He continued “It is clear that the company has very little wine to meet the demands of customers with a shortfall possibly of £12 million. We wish to ensure a speedy resolution to the questions that have been raised. Clearly many investors have lost substantial sums in what may turn out to be a straight fraud. This is a situation that should properly be regulated by the FCA but these investment houses fall outside regulation. The High Court has recently determined that some unregulated investments fall to be regulated but wine investment remains outside. It is time for the FCA to do something about this.”

ENDS

For further information on this news release, please contact:

David Greene, Partner +44 (0)20 7691 4000 david.greene@edwincoe.com