The high court in Manchester has wound up two art investment businesses in the public interest.
Gem Tobin and Dionysus Design Services, based in Cheshire and York, respectively, received payments from people who were persuaded to invest in works of art.
The two firms came to the Insolvency Service’s attention following an earlier investigation into two related companies, Halifax Mannin and Hey Design Services, which ran a similar investment scheme.
Halifax and Hey were wound up in March 2019 for conning investors out of £1.4m ($1.7m, €1.6m).
Gem Tobin and Dionysus’ activities were a continuation of the scheme operated by Halifax and Hey.
International network
The Insolvency Service discovered a linked £1m investment scheme which was run from either Spain or Morocco by a separate company, Asset Consulting Services or Asset Consulting Group.
The firm was subject to previous warnings by financial regulators.
Between October 2018 and June 2019, Gem Tobin received around £700,000 from investors, while Dionysus Design Services took over £200,000.
Most of the money was paid out to the firms’ bank accounts, but the investigators have not been able to understand how it was spent, as the individuals in control of the companies did not cooperate.
Subsequently, the companies were wound up for trading with lack of commercial probity and receiving money wrongly obtained from investors.
The Official Receiver has been appointed as the liquidator of Gem Tobin and Dionysus.
Valueless investment
David Hope, chief investigator at the Insolvency Service, said: “These companies have acted cynically in accepting almost a million pounds from members of the public, many of whom are elderly and vulnerable people, with no evidence to indicate that the investment being offered had any value or was likely to generate any return for the investors.
“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.”
