Court shuts down companies behind £9m truffle scam
Courts shut down five companies that carried out investment scams promising high-value truffles for commercial sales.
After a four day trial, five connected companies were wound up by the High Court in London on 12 October 2018, including: Viceroy Jones New Tech Ltd, Viceroy Jones Overseas PCC Limited, Westcountrytruffles Limited, Truffle Sales Ltd and Credit Free Limited.
The Insolvency Service has said that more than 100 investors were cheated out of their savings, totaling close to £9 million and potentially rising.
The court heard that Viceroy Jones New Tech used a network of unregulated financial advisory firms and targeted people that had access to their pension savings.
The advisors had close working relationships with George Frost, the common director of Viceroy Jones New Tech, Viceroy Jones Overseas PCC and Westcountrytruffles, and convinced the victims to transfer their savings into Small Self Administered Schemes* operated by Viceroy Jones New Tech and Viceroy Jones Overseas PCC based in the Seychelles.
Investors were told their savings were funding oak and hazel tree saplings inoculated with truffle spores planted and managed for 15 years at dedicated plantations worldwide. The truffles would then be cultivated on a commercial scale with investors and plantation companies benefiting from the sales.
However, investigators from the Insolvency Service found that no harvesting or cultivation has ever taken place to date at any of the plantations, including those in Spain and South Africa, despite the scheme first being sold to the public in 2012.
The companies devised convoluted contractual structures and manipulated costs to secure high-value investments.
For example, investors paid anywhere between £750 and £995 per sapling with the promise they would see significant returns within five years after the truffles had been cultivated. But similar inoculated saplings were available to the public at the same time, costing only £7.95 to £9.95 per sapling.
Investors were also miss-sold the investment opportunities through unsubstantiated claims, such as having the option to trade out at any time of their contract and one investor was told they could expect a 200% return over a ten year period.
In reality, investors had little or no remedy in relation to their investments and had no contractual relationship with the plantation companies responsible for maintaining the truffle trees for the contracted 15 years.
£9 million worth of investments remains unexplained, with investors’ funds originally paid into third party offshore bank accounts. Investigators were told the majority of funds were paid as commissions, although no supporting records have been provided to substantiate this.
Investigators have also been able to show that significant commissions were paid to the unregulated advisors, Truffle Sales Ltd, as well as to George Frost and his brother Brian, who was a former director of Westcountrytruffles.
The last company shut down by the courts, Credit Free Limited, had not actively participated in the truffle scam. But it received funds raised in the scheme, along with commissions received from a separate carbon credits scheme also operated by George Frost and Viceroy Jones Limited.
Using these funds, Credit Free Limited paid more than £1.8 million over a five-year period to George Frost and to former director, Jeffrey Hawes.
Cheryl Lambert, Chief Investigator for the Insolvency Service, said:
The companies and those behind them have showed no remorse in their calculated plan to scam investors of their pension pots. Although the Insolvency Service investigation was hampered by a lack of cooperation, the investigation pieced together the numerous layers in which the scam was wrapped.
We take the matter of unregulated pension liberation investment schemes very seriously and will take action to stop any such schemes who have acted unscrupulously.
All enquiries concerning the affairs of the companies should be made to: The Official Receiver, Public Interest Unit, 4 Abbey Orchard Street, London, SW1P 2HT. Telephone: 0207 637 1110, Email: firstname.lastname@example.org.
Notes to Editors
*Small Self Administered Schemes are occupational pension schemes targeted at small businesses and limited to a maximum number of 11 members.
Public file information for the five companies is as follows:
|Name and registration number||Date of incorporation||Registered Office||Share holding||current directorships|
|Viceroy Jones New Tech Ltd 08151134||20 July 2012||20 – 22 Wenlock Road, London, N1 7GU (Made Simple Group - Accommodation office service provider address)||£1 issued share – George Ronald Frost||George Ronald Frost.|
|Viceroy Jones Overseas PCC Limited C8413848||07 May 2014||c/o A.C.T. – Offshore Limited, Oliaji Trade Centre, Victoria, Mahe, Seychelles||Authorised share capital of $100,000, divided into 100 £1,000 shares, 50 each held by George Frost and Pauline Frost||George Frost and Pauline Frost|
|Credit Free Limited 06727364||20 October 2008||Matrix House, 12 – 16 Lionel Road, Canvey Island, Essex, SS8 9DE (a Maynard Heady office address)||100 allotted shares of £1 per share, held by Mr French. 25 shares held by George Frost, Pauline Frost, Jeffrey Hawes and Jean Hawes transferred on 12.08.16.||Neill Vincent French.|
|Truffle Sales Ltd 08166206||02 August 2012||Rimmer House, Bankhead Lane, Preston, Lancs, PR5 6YR||2 allotted £1 ordinary shares issued, I of each to Mr Liptrot and Ms Cointre||Catherine Cointre and Andrew Liptrot|
|Westcountrytruffles Ltd 08802624||04 December 2013||Nexus House, 139 High Street, Portishead, BS20 6PY||1,000 allotted £1 ordinary shares, 500 each held by Brian Frost and Alison Frost||George Ronald Frost.|
The petitions to wind up the companies were presented in the High Court in London on 7 April 2017, under the provisions of section 124A of the Insolvency Act 1986 following confidential enquiries 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, Energy and Industrial Strategy (BEIS).
Further information about live company investigations is available here.
Contact Press Office
Media enquiries for this press release – 020 7637 6498
The Insolvency Service
4 Abbey Orchard Street
This service is for journalists only. For any other queries, please contact the Insolvency Enquiry line on 0300 678 0015.
For all media enquiries outside normal working hours, please contact the Department for Business, Energy and Industrial Strategy Press Office on 020 7215 1000.
You can also follow the Insolvency Service on:
Latest News from
Crackdown on directors who dissolve companies to evade debts17/12/2021 11:24:00
Rogue directors who dissolve their companies and avoid paying liabilities to staff, creditors and the taxpayer can now be disqualified from being a director.
National success for our Excellence in Supply winners03/12/2021 09:10:00
Fresh from their success at the NHS in the North Excellence in Supply awards, three winners have now received national recognition for their work.
New powers to tackle unfit directors of dissolved companies12/05/2021 15:20:00
New legislation to target company directors who dissolve their businesses and leave staff or taxpayers out of pocket.
Pre-pack sales to face mandatory independent scrutiny09/10/2020 11:22:00
New laws will require mandatory independent scrutiny of pre-pack administration sales where connected parties are involved in the purchase.
Regulations temporarily suspended to fast-track supplies of PPE to NHS staff and protect companies hit by COVID-1915/05/2020 16:21:00
New measures announced yesterday will give vital support to frontline NHS staff battling COVID-19 and support businesses under pressure as a result of the coronavirus outbreak.
Regulations temporarily suspended to fast-track supplies of PPE to NHS staff and protect companies hit by COVID-1930/03/2020 16:14:00
New measures announced recently (28 March 2020) will give vital support to frontline NHS staff battling COVID-19 and support businesses under pressure as a result of the coronavirus outbreak.
Dean Beale appointed Chief Executive of the Insolvency Service07/01/2020 13:12:00
Dean Beale has been appointed as Chief Executive Officer of the Insolvency Service.
Thomas Cook: information for customers, employees, creditors and shareholders23/09/2019 14:48:00
Information for customers, employees, creditors and shareholders of Thomas Cook in liquidation.