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.”
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About Edwin Coe
Edwin Coe LLP is a full service law firm based in the heart of London’s historic legal district in Lincoln’s Inn. Founded in 1913, we have grown from our litigation origins to become a thriving and dynamic practice, providing a comprehensive range of legal services to meet the needs of a wide variety of businesses, individuals and organisations based throughout the UK and internationally.
With 43 Partners, we are ranked 115 in the 2022 edition of The Lawyer ‘UK 200’ law firms and are recommended in all the major legal directories. We provide clients with innovative, tailored and integrated legal services and combine a highly personal and responsive service with industry leading expertise.