Legally changing his name did little to prevent the director of two property companies from being handed a nine-year disqualification by the high court.
Matthew Richard Roberts, as he was known prior to November 2017, targeted high net worth individuals and ‘sophisticated investors’ to raise funds for the development of an entertainment complex.
Roberts changed his name to August Richard Templar on 3 November 2017.
Grand re-development
Two companies, BBH Property 1 and BBH Property 2, were wound up in August 2017 along with 11 others which were all set up by Roberts and his wife.
The Official Receiver was subsequently appointed liquidator.
The disqualification order specifically relates to Roberts’ actions as director BBH1 and BBH2, not to any of the other companies of which he was director.
Broken promises
The site in question was a former convent near Stroud, close to the border with Wales. The complex was to include a hotel, music venue, members’ club and spa.
Between November 2013 and May 2014, BBH1 raised over £1.3m ($1.8m, €1.5m) from investors who were told that it would be used to buy four properties on the site.
They were further promised that their money was secured because BBH1 would own the properties free of any debt.
But £200,000 was used to purchase just one property, while over £880,000 was transferred to an unconnected company, depriving investors of the promised security.
In for a penny…
Sister company BBH2 operated in a very similar fashion but managed to secure more funds from investors.
Between February 2014 and March 2015, a total of £3.4m was raised to fund the ‘free of debt’ purchase of three properties on the former convent site.
The list of properties to be purchased included the one already acquired by BBH1.
But none were actually bought.
Of the money raised, £140,000 was paid to the same ‘unconnected’ company referenced above that received funds from BBH1. A further £300,000 was paid to a third person connected with Roberts.
It is not clear from the Insolvency Service statement what happened to the remaining funds.
BBH1 has £1.08m accounted for out of £1.3m, while BBH2 has just £440,000 out of £3.4m accounted for.
International Adviser has reached out to the Insolvency Service for further details.
Assistant official receiver John Matthews said: “Nine years is a significant period to be removed from the corporate arena and should serve as a warning to other directors operating investment schemes that you could be disqualified for several years.”
