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Disqualification and suspended sentence for wine investment fraud (10 March 2016)

Date: 10/03/2016
Duncan Lewis, Crime Solicitors, Disqualification and suspended sentence for wine investment fraud

The director of a wine investment company has been disqualified for 12 years, after an investigation by the Insolvency Service found money was taken from investors for wine that was never purchased – and records of the company’s transactions were not kept.

Jeff Berrill from Northampton was the sole director and shareholder of the company and had worked in the wine investment industry for several years.

Mr Berrill said that when Westminster Fine Wines Limited was incorporated on 7 October 2011 the wine industry was “booming”.

However, the wine market soon suffered a significant downturn and confidence in wine investment fell. The market saw falls of 20%-30% in wine prices, with several companies going out of business.

In late December 2013, Westminster Fine Wines Limited received notice that the bank was withdrawing funding – and on 27 February 2014, the company was placed into liquidation.

The Insolvency Service investigation found that Mr Berrill caused Westminster Fine Wines Limited to trade with a lack of commercial probity – between 3 August 2012 and 31 May 2013, at least 11 investors had purchased at least 57 cases of wine from the company, for which Westminster received payments into its bank account of at least £194,885.

The investors were informed by representatives of Westminster that the money would be invested on their behalf in fine wines, which would be stored in a bonded warehouse facility.

However, the wine paid for by these investors was never purchased by Westminster – and when Westminster entered into liquidation, no fine wines were available and no others assets were available to enable a distribution to these investors.

Records provided by Mr Berrill show that Westminster received £335,720 from clients for whom wine was never purchased or delivered to a bonded warehouse – these additional investors have not made claims in the liquidation.

Mr Berrill also failed to maintain and/or preserve – or in the alternative, failed to deliver up – accounting records and as a result, it was not possible to explain and account for the sale, purchase and disposal of wine, or explain and account for the disposal of investors’ monies.

Investigators also found it was not possible to determine the reason for payments from the company’s bank account of £244,443 – which included payments to restaurants, pubs, hotels, supermarkets and to retail outlets of £61,854, and payments to Mr Berrill of £43,562.

It was also not possible to verify whether Westminster received the benefit of the payments – and why any assets that were purchased with the funds were not available for creditors on liquidation.

At the date of liquidation, Westminster had no assets and liabilities of £233,066.

On 6 November 2015, Jeff Berrill was – upon his own confession – convicted upon indictment of five counts of dishonestly making false representation to make gain for self/another or causing loss to others/exposing others to risk.

He was sentenced to 12 months’ imprisonment suspended for 24 months at Blackfriars Crown Court.

Mr Berrill gave a disqualification undertaking to the Secretary of State for Business, Innovation and Skills not to promote, manage, or be a director of a limited company from 3 March 2016 until 2028.

Cheryl Lambert, Chief Investigator at the Insolvency Service, said:

“Directors have a duty to ensure that they act competently and with commercial probity.

“Directors who do not comply with this basic obligation can expect to be investigated by the Insolvency Service and enforcement action taken to remove them from the market place.”

Duncan Lewis Fraud Lawyers

Duncan Lewis fraud lawyers can advise at any stage of a charge involving fraud, including investment fraud, boiler room scams, Ponzi schemes, pyramid selling and white collar crime.

There are Duncan Lewis offices nationwide and a Duncan Lewis fraud lawyer can attend interviews under caution, as well as liaising with investigating authorities such as the Insolvency Service, SFO, FCA, HMRC, BIS and City of London Police.

For expert legal advice on fraud charges, call Duncan Lewis fraud lawyers on 0333 772 0409.

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


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