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Liquidation for company that used ‘Wolf of Wall Street’ tactics

The High Court has made a compulsory winding up order, in the public interest, placing the company into liquidation, against a wine investment firm Bordeaux Fine Wines Ltd, whose turnover was £45million, but only held wine worth just £200,000 on behalf of investors.....

Prior to the liquidation, the company had paid $80,000 (about £50,000) to the so-called Wolf of Wall Street, Jordan Belfort, to give a two-day motivational seminar, to sales reps.

While the reps might have been motivated to make money, it appears they got little or no training in wine and knew next to nothing about the investment they were flogging.

Rogue company put into compulsory liquidation

Mrs Registrar Derrett ordered the company to be put into compulsory liquidation, saying that director Kenneth Gundlach “appeared to treat the company account as his own bank account”.

The Insolvency Service, whose investigation led to the winding up petition, said: “ We will not allow rogue companies to rip off vulnerable and honest people.”

A Partner in the law firm representing creditors owed more than £3m commented "We are pleased to see that the court has made a compulsory order because this is a situation which needs investigating immediately.”

Creditors and customers learn of scam. Estimated £7.5m owed to taxman

"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.”

It is clear that the company has very little wine to meet the demands of customers with a shortfall possibly of £12 million."

Another victim is reported to be the taxman, estimated to be owed £7.5million.

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