A businessman behind a Gloucestershire hotel, restaurant and live music project which collapsed owing millions of pounds has been banned from being a director for nine years.
Matthew Roberts, from Salcombe in Devon, appeared at the High Court on July 9 having changed his name to August Richard Templar.
The former owner of the Convent hotel and live music venue in South Woodchester, near Stroud, was handed the disqualification for allowing two property companies to trade with a “lack of commercial probity”.
READ MORE: {}
According to the Insolvency Service, from 2013 to 2015, Mr Roberts targeted high-net-worth individuals and "sophisticated investors", promising their investments would develop part of an entertainment complex.
Based on the site of a former convent, investors were told the complex would include a hotel, music venue, members club and spa.
Between November 2013 and May 2014, Mr Robert’s company BBH Property 1 raised over £1.3m, according to the Insolvency Service. Investors were told this funding would be used to buy four of the Convent’s properties, with the promise that their money was secured because BBH Property 1 would own the properties free of any debt.
However, £200,000 was used to purchase only one of the properties, while over £880,000 was transferred to an unconnected company. This meant that the investors did not have the promised security for their money, the Insolvency Service said.
A second business, BBH Property 2, operated in the same way. The company raised £900,000 while Mr Roberts was a director and a total of £3.4m between February 2014 and March 2015, promising investors “free of debt” purchase of three properties at the Convent.
Most Read
BBH Property 2, however, did not purchase any properties. From the money raised by investors, £140,000 was transferred to the same company BBH Property 1 had paid money into, and £300,000 was paid for the benefit of a third person connected to Matthew Roberts, it is understood.
John Matthews, the assistant official receiver, said: "Matthew Roberts used the two property companies as vehicles to raise millions of pounds that was claimed to be for the purchase of specified properties as part of a grand re-development project.
“The money raised, however, was not used for that specific purpose and this meant the investors did not have the security that they had been promised.
“Nine years is a significant period to be removed from the corporate arena and should serve as a warning to other directors operating investment schemes that you could be disqualified for several years.”
BBH Property 1 and BBH Property 2 are two of 13 companies that were wound up by the courts in 2017, having taken £7.8m from investors.
Mr Matthews was appointed liquidator at the time and following further enquiries it was uncovered that Mr Roberts was the director of several investment companies.
His disqualification, which began on July 30, only relates to BBH Property 1 and BBH Property 2 - and not any of the other companies, however. It also does not pertain to any other companies based at the Convent complex.
Don’t miss
The ruling means Mr Roberts cannot, directly or indirectly, be involved in the promotion, formation, or management of a company without the permission of the court.
His change of name by deed poll does not affect his disqualification, the Insolvency Service added.
To get all the latest South West news straight to your inbox, why not sign up to our daily news roundup?