Two companies which targeted property developers and builders looking for funding have been wound up by the High Court following an investigation by Company Investigations.
International Project Management Limited (IPL) and International Group Limited (IGL), which despite their overseas registration were both based at Suite A, The Chambers, 5A The Square, Petersfield, Hampshire, and had no link with UL companies of the same or similar names.
The companies claimed to have access to large amounts of money from offshore investors which could be made available to developers in return for payment of upfront fees to cover “due diligence” and “administration”. However nothing was provided in return.
These fees could run into hundreds of thousands of pounds and the clients were left empty-handed as the companies failed to provide any funding.
Some clients were introduced to the companies by an ‘introducer’, Jones Taylor Estates Limited, which itself was wound up by following an Insolvency Service investigation in February.
The introducer received a cut of the money paid by the client.
There was no evidence that either broker made any attempt to obtain funds for clients for the clients but instead the funds they received were swiftly divided up and distributed to various individuals and businesses registered in Bulgaria, where large amounts were withdrawn in cash.
David Hill, Chief Investigator at the Insolvency Service, said: “These companies told clients they would be able to secure loans for them. The reality was that they were aware this was never likely to happen.”
“The Insolvency Service will investigate and bring to a halt the activities of companies that mislead clients in this way and that are found to be operating against the public interest.”
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