A construction firm has been wound up by the High Court after tricking investors into parting with more than £1m of their cash.
Exmount Construction received around £1.1m from would-be investors between March 2018 and July 2019.
The Insolvency Service said the firm produced a “professional-looking” brochure for potential investors which promised fixed returns of 9.12 per cent for three-year bonds and 10.35 per cent on five-year bonds.
However, once the victims handed over their money, they were unable to contact the firm.
The Insolvency Service investigation found there was no record of any money being used for actual property investments and around £800,000 was withdrawn by company directors, or paid to other third parties.
Jedna Okhiria, chief investigator at the Insolvency Service, said: “Exmount Construction induced investors by providing false and misleading statements in sales and marketing material to part with substantial sums of money to invest in property bonds with the promise of generous returns.
“In reality, this was a scam and we urge potential investors to carry out rigorous due diligence to ensure they use their funds on legitimate investments.”
Judge Briggs, speaking during the winding-up hearing, concluded the company “had traded in an objectionable manner”.
The directors refused to co-operate with investigators or contest the winding-up petition.
The Official Receiver has been appointed liquidator of the company and will now consider whether to take action against the directors in relation to their conduct and management of the company.
sally.hickey@ft.com
