News: Liquidators’ Tough Task to Track Millions Lost in Unregulated Corran Investment Scheme
The BBC’s Rip Off Britain programme warns viewers to beware of unregulated investments — unless they can afford to lose everything they put in.
Hundreds of investors in hotel rooms at The Corran Hotel, Laugharne, Carmarthenshire, are unlikely to see their money back. Liquidators Robert Dymond and Lisa Hogg, of Wilson Field Ltd in Sheffield, in their progress report dated May 20th 2019 and lodged with Companies House, have received claims from 439 unsecured creditors totalling £14,429,005 (and 09p).
Robert Dymond reported that he had yet to receive claims from 162 creditors whose debts total £3,413,315 “as per the company’s statement of affairs”. ‘The company’ in this case is property firm Kayboo Ltd, in liquidation alongside East Marsh Operational Co Ltd, which ran the hotel business.
The liquidators discovered “a number of issues which required further review, including the pre-packaged sale of the business, the dissemination of funds, potential mis-selling of the investments and failure to register the property titles at the Land Registry as well as a number of payments to connected and unconnected parties”.
Claims of £1,371,589.74 and £520,700 have been submitted by the liquidators to the bankruptcy proceedings of “connected individuals” who received payments “that were deemed not legitimate business expenditure”.
“A number of connected parties and individuals” explained that the reason they received funds was “because the Companies [Kayboo and East Marsh Operational Co] were experiencing difficulties with their bank due to anti-money laundering regulations and the account being frozen. In order for the business to continue operating the directors claim that they had to transfer the funds either to themselves or connected parties to process the funds on behalf of the company.”
Will any monies will be recovered? “At the present moment it is uncertain whether there will be sufficient funds to make a distribution to any class of creditors,” the liquidators state.
The BBC1 programme Rip Off Britain (broadcast on January 9th 2019, repeated July 17th 2019) featured Dexter Jeffrey, a disappointed investor in The Corran, and emphasized the risks of this and other unregulated investments.
The Corran Hotel, trading as The Corran Resort and Spa, is under new ownership.