Have a question?
033 3772 0409

Legal News

Director who sold Rare Earth Elements as investments disqualified for 12 years (3 May 2016)

Date: 03/05/2016
Duncan Lewis, Legal News Solicitors, Director who sold Rare Earth Elements as investments disqualified for 12 years

The director of the Global Metal Exchange Ltd (GME) has been disqualified for 12 years for selling Rare Earth Elements (REEs) as an investment and for failing to maintain proper records.

The disqualification of director Samuel Peter Hawkins follows an investigation by the Official Receiver at Public Interest Unit, a specialist team of the Insolvency Service.

The Official Receiver’s involvement commenced with the winding up of the company in the public interest, after the affairs of the company were investigated by Company Investigations.

Global Metal Exchange Ltd was incorporated on 31 July 2012. The winding up order against Global Metal Exchange Ltd was made on 12 March 2014.

The investigation found the price of the REEs had been inflated by several hundred percent, so that only GME and its supplier of REEs made money from the venture.

However, GME had telephoned individuals and sold them REEs on the basis that they were suitable as an investment.

There was no viable exit strategy for GME customers at the time – and, even if there had been, the price GME charged for the REEs meant that the REEs could not be sold without financial loss.

As a result, customers are owed at least £33,414.61.

Samuel Hawkins has given an undertaking to the Secretary of State for Business, Innovation & Skills to be disqualified as a director for 12 years.

Mr Hawkins’s disqualification from 22 March 2016 means that he cannot promote, manage, or be a director of a limited company until 2028.

Official Receiver in the Public Interest Unit, Paul Titherington, said:

“The Insolvency Service will not hesitate to use its enforcement powers to investigate and disqualify directors whose companies defraud the public.

“The amount owed to customers may in fact be higher than that revealed by our investigations, as the company failed to keep adequate records and there may therefore be additional customers I am presently unaware of.”

Duncan Lewis Business Crime Solicitors

Duncan Lewis business crime solicitors can advise even before business crime charges are brought, including charges relating to misrepresentation, company fraud, financial fraud, breaching conditions of disqualification, tax and VAT evasion, embezzlement, false accounting, phantom companies, failing to deliver up records to the Liquidator, white collar crime and IT crime/hacking.

There are Duncan Lewis offices nationwide and a specialist business crime solicitor can attend interviews and negotiate with the Insolvency Service, BIS, HMRC, SFO, FCA, and City of London Police.

Duncan Lewis is a leading firm of Legal Aid solicitors – in cases where Legal Aid is not available, Duncan Lewis offers competitively priced fixed fees whenever possible.

For expert legal advice on business crime, call Duncan Lewis business crime solicitors on 0333 772 0409.

For 24/7 help at a police station, call the Duncan Lewis 24-Hour Emergency Helpline on 0333 772 0607.

Call us now on 033 3772 0409 or click here to send online enquiry.
Duncan Lewis is the trading name of Duncan Lewis (Solicitors) Limited. Registered Office is Spencer House, 29 Grove Hill Road, Harrow, HA1 3BN. Company Reg. No. 3718422. VAT Reg. No. 718729013. A list of the company's Directors is displayed at the registered offices address. Authorised and Regulated by the Solicitors Regulation Authority . Offices all across London and in major cities in the UK. ©Duncan Lewis >>Legal Disclaimer, Copyright & Privacy Policy. Duncan Lewis do not accept service by email.