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Directors of £5 million Swiss land banking company disqualified for 12 years Embargoed until 00.01 Friday October 30 2009
Hambrook and Greenstock AG
Two Swiss-based company directors who deceived UK investors into paying more than £5 million in a ‘land-banking’ scam have been disqualified as directors for 12 years, following a Government investigation.
The former directors of Hambrook & Greenstock AG (in liquidation), Andres Schenker and Claudia Daxelhoffer, have today signed disqualification undertakings after inquiries by the Insolvency Service’s Companies Investigation Branch (CIB) revealed a pattern of unfit conduct.
The company sold plots of greenfield land to UK investors at three sites at Sible Hedingham, Marlow, and Chalford. The company bought the land for just over £600,000. Some 750 plots were then sold to investors for £5 million.
The investors were told that the land would receive planning consent for development and would increase dramatically in value. That permission was never granted and the plots have remained undeveloped.
Business Minister Ian Lucas said:
“This sends a strong message to company directors who deceive and rip-off members of the public: we will investigate and take firm action against you.
“Investors should also be wary of any land-banking or other schemes which promise huge profits for little outlay. To use the old adage, if it sounds too good to be true, it probably is.”
Mr Schenker and Mrs Daxelhoffer accepted that their misconduct made them unfit to be company directors, namely that they had:
Failed to give any or any proper consideration to the legality of the company’s land banking scheme.Caused or permitted unfounded and misleading statements to be made to the public in connection with the plots of land.Caused or permitted the company to enter into voluntary liquidation in Switzerland without making any provisions to refund money to UK investors.Mr Schenker misrepresented the company’s scheme to the Financial Services Authority.
NOTES TO EDITORS
1.Companies Investigation Branch (“CIB”) carries out confidential enquiries under Section 447 of the Companies Act 1985 on behalf of the Secretary of State for Business, Innovation and Skills (“BIS”), and is part of the Insolvency Service, an Executive Agency of BIS. Where necessary it takes further action in the name of the Secretary of State. This can include winding up proceedings in the public interest or disqualification proceedings against directors under Section 8 of the Company Directors Disqualification Act 1986.
2.Section 8 of the Company Directors Disqualification Act 1986 allows the Court to make a disqualification order of up to 15 years for unfit conduct. To avoid the need for a Court hearing, directors who accept that their conduct is unfit can offer an acceptable disqualification undertaking. This has the same legal effect as a disqualification order made by the Court and usually includes a schedule identifying the director's unfit conduct. The consequences of breaching a disqualification undertaking are the same as those for breaching a disqualification order; a fine or imprisonment for up to two years.
3.Companies House maintains a public register of disqualified directors which can be viewed at http://www.companieshouse.gov.uk/.
4. Members of the public who think they know of any person who is acting in breach of a Disqualification Order or Undertaking should report that person's details to The Insolvency Service Enforcement Hotline on 0845 601 3546 (24 hour message service).
5.Hambrook & Greenstock AG was ordered into liquidation on grounds of public interest in the High Court on 28 November 2007 following enquiries carried out by CIB. Further details are set out in the News Release http://nds.coi.gov.uk/content/detail.aspx?NewsAreaId=2&ReleaseID=334343&SubjectId=16&AdvancedSearch=true
6.It is an offence to establish and operate a collective investment scheme in breach of the general prohibition in section 19 of the Financial Services and Markets Act 2000 (“FSMA”). Further, section 26 of FSMA provides a statutory right to recover the purchase monies pursuant to section 26 (2) of FSMA, except where a Court has determined otherwise
7. 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. The Service also 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.
8. For further information about the Insolvency Service including CIB and disqualifications see: http://www.insolvency.gov.uk
9. Media enquiries should be directed to Lisa Miller, Insolvency Service Press Office Manager 020 7674 6910 or Ade Daramy, Press Officer 020 7596 6187.
Contacts:
Insolvency Service
nds.insolvencyservice@coi.gsi.gov.uk
Ade Daramy
Phone: 020 7596 6187
ade.daramy@insolvency.gsi.gov.uk
Lisa Miller
Phone: 020 7674 6910
lisa.miller@insolvency.gsi.gov.uk
