British investment firm Intercontinental Wines Ltd has been liquidated in the public interest after “wasting” investors’ money on personal expenses, British government officials said, according to Decanter.com
Intercontinental Wine Ltd made sales of nearly £460,000 worth of wine over the period of March 2015 to February 2017 but bought only £100,000 worth of wine, according to the Insolvency Service.
“Intercontinental Wines enticed customers with the promise of attractive returns from building a portfolio of fine wines, entrusting the company to make purchases and store wines at bonded warehouses on their behalf,” said Irshard Mohammed, senior investigator and case manager at the Insolvency Service. “However, the company blatantly failed to do so in the vast majority of sales made and instead took customers’ funds on face value, frittering it away on unexplained or personal expenditure.”
Clients were also told that wines would be stored in bond in personal accounts. When investigated, only 10% of clients had wine stored in such a way, the Insolvency Service said.