Two north-west companies have gone bust after an investigation found they were behind a fraudulent art investment scheme.
The Insolvency Service claimed Warrington-based Gem Tobin and York-based Dionysus Design Services had received a combined £900,000 from investments in works of arts, supposedly by renowned painters, between October 2018 and June 2019.
Gem Tobin received approximately £700,000 from investors, while Dionysus Design Services received more than £200,000.
The vast majority money received by the two companies was paid out of the companies’ bank accounts, the Insolvency Service said.
However, investigators couldn’t determine how the funds have been spent as those believed to have been in control of the companies failed to co-operate with enquiries.
The companies were wound up at the high court in Manchester last week (October 7).
David Hope, chief investigator for the Insolvency Service, said many of the “investments” came from elderly and vulnerable members of the public.
He said: “These companies have acted cynically in accepting almost a million pounds from members of the public...with no evidence to indicate that the investment being offered had any value or was likely to generate any return for the investors.
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“This continues a pattern of behaviour that was identified in relation to other companies.”
“Thankfully, the courts have now put a stop to their activities, preventing further harm, and anyone approached by, or thinking about making an investment with, Asset Consulting Services or Asset Consulting Group should read the warning issued by the Financial Conduct Authority and take independent financial advice before making any decisions.”
The fraudulent scheme was a continuation of the activity carried on by Halifax Mannin and Hey Design Services, which were wound up on March 1 after they were found to have abused investors’ funds of almost £1.4m, the Insolvency Service said.