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Four London companies involved in selling “miracle” software guaranteed to make investors money trading on the London Stock Exchange, have been ordered into liquidation in the High Court on grounds of public interest following an investigation by the Insolvency Service.

The court heard how Direct Technologies Limited, D Corporation Ltd, Stock Market Charting Programs and Data Specialists Limited and On Demand Sales Consultants Limited raised at least £1m from the public who were duped into buying the software by false claims including those in fake testimonials, false online articles and in purported online magazines claiming to be an award winner alongside various global financial institutions such as a worldwide bank. It was also claimed and that their ‘DTL Direct Trader System’ incorporated:

• 10 years of extensive past trading data on over 125,000 stocks
• the ability to apply 251 internationally recognised charting formulae
• the ability to download daily close of market data on all stocks listed on the London Stock Exchange
• the application of more than three billion calculations each day to suit the user’s trading requirement
• alerts for both profit taking and to stop loss situations
• enable the user to make comprehensive trading decisions in only minutes each day
• built in accounting package

Numerous related websites were identified by the investigation including http://dtl.info which had an “expert review page” on how to trade and make money and to become part of its “trading family”.

The system claimed to tick all the right boxes for investors – “simple to use, proven results, no experience necessary” and that “You can help secure your future and take advantage of our proven money making strategy with a one off investment of £8,800”.

Welcoming the court’s winding up decisions Chris Mayhew, Company Investigations Supervisor, said:

This investment opportunity was as dodgy as the testimonials.

No-one made any money apart from those behind the companies and the guaranteed profits or all of your money back was as elusive to investors as the companies themselves.

The Insolvency Service will not allow companies to operate in this way and will investigate abuses and close down companies if they are found to be operating, as here, against the public interest.

Notes to Editors

Direct Technologies Ltd (05094811) was incorporated on 5 April 2004. The registered office of the company from incorporation to 8 February 2013 was Suite B, 29 Harley Street, London, W1G 9QR and from 8 February 2013 to 3 October 2013 Level Four Lloyd’s Building, 4-12 Leadenhall Street, London, EC3V 1LP; from 3 October 2013 for one day only Flat 29, 30 Woburn Place, Bloomsbury, London, WC1H OJR and from 3 October 2013 to present date Unit 29, 30 Woburn Place, Bloomsbury, London, WC1H OJR. The recorded directors have been Nominee Director Ltd from incorporation to 8 February 2013; Mrs Edwina Coales from 14 October 2010 to 8 February 2013 and Mr Anthony Joseph from 8 February 2013 to present date. The company secretary from incorporation to 8 February 2013 was Nominee Secretary Ltd. No successor secretary is shown to have been appointed. The company’s share capital is shown to be 1,000 £1 ordinary shares all held by Mr Joseph.

Dormant accounts were filed for the period up to 30 April 2012. According to the company’s abbreviated and unaudited filed accounts for the year ending 8 February 2013 shown to be approved by Mr Joseph the company had no assets and owed creditors £1,200. No further accounts were filed.

The company opened virtual office facilities at the Lloyds Building and at 200 Aldersgate in London in reliance on a fake utility bill and which facilities were shortly afterwards withdrawn.

The numerous trading styles used included “Direct Trader”, “DTL Direct-Trader” and “DTL Capital”.

D Corporation Ltd (05071883) was incorporated on 12 March 2004. The registered office of the company from incorporation to 25 September 2013, was Suite B, 29 Harley Street, London, W1G 9QR and from 25 September 2013 to present date 60 Cannon Street, London, EC4N 6NP. The recorded directors have been Nominee Director Ltd from incorporation to 25 September 2013; Mr Waris Khan from 4 July 2013 to 25 September 2013; Mrs Edwina Coates from 14 October 2010 to 20 April 2012 and Mr Wayne Brennon from 25 September 2013 to present date. The company secretary from incorporation to 25 September 2013 was Nominee Secretary Ltd. No successor secretary is shown to have been appointed. The company’s share capital is shown to be 1,000 £1 ordinary shares all held by Mr Brennon.

• Dormant accounts were filed for the period up to 31 March 2013. According to the company’s abbreviated and unaudited filed accounts for the period from 1 April 2013 to 30 September 2013 shown to be approved by Mr Brennon the company had cash at bank of £1 and owed creditors £2,500. No further accounts were filed.
• The company had a virtual office facility at 60 Cannon Street, London, EC4N 5NP.

Stock Market Charting Programs and Data Specialists Limited (08196465) was incorporated on 30 August 2012 in the name DTL Global Limited. The name of the company was changed to its present style on 30 September 2013. The registered office of the company from incorporation to present date has been 27 St Clement’s Lane, London, EC4N 7AE. The sole recorded director throughout has been Mr Adrian James Breckon. No secretary is shown to have been appointed. The company’s share capital is shown to be 1,000 £1 ordinary shares all held by Mr Breckon.

• No accounts or annual returns have been filed which have been overdue since 30 May 2014 and 27 February 2014 respectively.
• The company had a virtual office facility at 27 St Clement’s Lane, London, EC4N 7AE.

On Demand Sales Consultants Limited (08351594) was incorporated on 8 January 2013 in the name Sales Force on Demand Limited. The name of the company was changed to its present style on 4 August 2013. The registered office of the company from incorporation to present date has been 86-90 Paul Street, London, EC2A 4NE. The sole recorded director throughout has been Ms Katie Bray. No secretary is shown to have been appointed. The company’s share capital is shown to be 1,000 £1 ordinary shares all held by Ms Bray.

• No accounts or annual returns have been filed which have been overdue since 8 October 2014 and 5 February 2014 respectively.
• The company provided telemarketing services and claimed not to have been paid for its cold calling services.

On 19 May 2014 the Financial Conduct Authority issued a warning that they believed D Corporation Ltd trading as DCL Systems and trading as DCL Close of Market System had been providing financial services or products in the UK without authorisation.

The petitions to wind up the companies were presented by the Secretary of State in the High Court on 30 March 2015 under the provisions of section 124A of the Insolvency Act 1986 following confidential enquiries carried out by Company Investigations under section 447 of the Companies Act 1985, as amended.

The grounds to wind up each company were:

• Direct Technologies Limited – failure to co-operate with the investigation; lack of transparency as to its management; abandonment; failure to file returns and trading with a lack of commercial probity
• D Corporation Ltd – abandonment and trading with a lack of commercial probity
• Stock Market Charting Programs and Data Specialists Limited – failure to co-operate with the investigation; lack of transparency as to its management; abandonment and failure to file accounts and returns
• On Demand Sales Consultants Limited – abandonment and failure to file accounts and returns

In ordering all four companies into liquidation on 17 June 2015 Mr Registrar Baister said:

These are the unchallenged petitions of the Secretary of State to wind up four companies whose business is inter-related and involves selling software supposed to assist individuals trade on the London Stock Exchange … the unopposed evidence reveals a pattern of cold calling and aggressive sales techniques … with the business said to be similar to an earlier company to which I will return … in a nutshell the business involves selling on the back of representations a product which, on the basis of the widespread evidence of complaints, appears not to work … the brochures used by Direct Technologies are similar to those used by Corporate Financial Trading Solutions and Investments (London) Limited which was wound up in the public interest on 8 June 2011 and was engaged in a similar business … Counsel for the Secretary of State has asked me to draw inference of some connection … I am prepared to draw that inference …. the allegations, in the absence of any challenge, are made out, save for the abandonment matter in one company I referred to earlier, and warrant winding up the companies in the public interest and I make the usual compulsory orders in relation to all of the companies.

Corporate Financial Trading Solutions and Investments (London) Limited (05200504) was ordered into liquidation in the High Court on 8 June 2011, together with CFS Operations Ltd (06693319), by Registrar Barber on the petitions presented by the Secretary of State in the High Court on 16 December 2010 under the provisions of section 124A of the Insolvency Act 1986 following confidential enquiries carried out by Company Investigations under section 447 of the Companies Act 1985, as amended.

Company Investigations, part of the Insolvency Service, uses powers under the Companies Act 1985 to conduct confidential fact-finding investigations into the activities of live limited companies in the UK on behalf of the Secretary of State for Business, Innovation & Skills (“BIS”). Further information about live company investigations is available.

The Insolvency Service administers the insolvency regime, investigating all compulsory liquidations and individual insolvencies (bankruptcies) through the Official Receiver to establish why they became insolvent. It may also use powers under the Companies Act 1985 to conduct confidential fact-finding investigations into the activities of live limited companies in the UK. In addition, the agency authorises and regulates the insolvency profession, deals with disqualification of directors in corporate failures, assesses and pays statutory entitlement to redundancy payments when an employer cannot or will not pay employees, provides banking and investment services for bankruptcy and liquidation estate funds and advises ministers and other government departments on insolvency law and practice. Further information about the work of the Insolvency Service, and how to complain about financial misconduct, is available.

All public enquiries concerning the affairs of the company should be made to: The Official Receiver, Public Interest Unit, 4 Abbey Orchard Street, London, SW1P 2HT. Telephone: 0207 637 1110 Email: piu.or@insolvency.gsi.gov.uk.