Following an investigation by the Insolvency Service, investment
firm Mulberry Wynford has been dissolved by the High Court.
Mulberry Wynford claimed to have headquarters in London’s Square Mile, as well as having a 150 year heritage and offices in the US, Far East and Arab States. In reality the company consisted of two men – Michael Bashir and Andreas Christodoulou – both of whom were under 40 years old.
Dealing in diamond and carbon credits, Mulberry Wynford was found to have sold to investors from across the world, who then found themselves unable to cancel their investment due to the company’s policy of requiring written notification. Due to a lack of registered office space Mulberry Wynford was, in effect, unable to receive mail, leaving many people with investments they unable to get out of, if they were in fact genuine investments in any event.
The company is now in liquidation following evidence given by investors in court. The total amount of losses is at present unknown, but given the High Court’s decision it is likely that more investors in Mulberry Wynford will come forward. A further hearing at the High Court is due to take place in 2016, when liability for costs incurred by investors is decided.
What are carbon credits?
Mulberry Wynford joins a long list of companies already dissolved by the courts for selling carbon credits. Given the high prices often charged for such investments, the chances of making a profit are very rare.
Selling carbon credits involves a licence to produce carbon dioxide, with investment firms often advising individuals that they have a right to sell these credits on. In many cases, investors are not only unable to make a profit on the credits they have purchased, but are also unable to sell them on at any price.
Due to an unregulated market, selling carbon credits is open to fraudulent activity and, even in legitimate cases, is far too complex for the huge majority of investors to be able to profit from. However simple a scheme might appear, the potential pitfalls are simply too high to justify the risk involved.
“Sadly this is yet another example of people falling for an investment that sounds too good to be true. This is something that we come across on a regular basis which is very unfortunate. Our advice is always to be suspicious of cold calls or investments that seem to offer very high returns. We are able to help some clients who fall victim to investment scams but it’s better to avoid running into this sort of problem in the first place.”
Peter McKenna, Partner
If you have invested in Mulberry Wynford and subsequently lost out financially, TLW Solicitors are here to help on a no-win no-fee basis.
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