LIVERPOOL BASED FINANCE BROKERS WOUND UP

26 Jul 2002 01:10 PM

Two Liverpool based financial brokerage companies which stole more than £200,000 from clients have been wound up following an investigation by DTI's Companies Investigation Branch.

Cabot Houston Corporation Limited ("Cabot Houston") and Connaught Corporation Limited ("Connaught"), both based in Albert Dock, claimed to be financial brokers, who could obtain extensive funding for their clients for capital projects.

Clients were attracted by Cabot Houston's claims that it had experience in managing billions of dollars of assets and that it was able to fund projects itself as a joint venture partner.

Clients were also told that the company had offices in America and employed a team of top professionals. In reality Cabot Houston was entirely managed and controlled by James Tomkins.

In nearly two years the company had promised to obtain funding of billions of dollars for its 40-plus clients but never came up with any cash. Together the clients, mostly foreign based, had paid at least £200,000 in advance fees.

In his judgement His Honour Judge Rich QC stated that Cabot Houston had been run in a "dishonest manner."

It emerged that James Tomkins, director of both companies, had been an undischarged bankrupt while running the companies, which in itself was reason to wind up them up.

Clients were typically charged $7,500 (approximately £5,000) each by the companies in exchange for the financing services. However, most of the companies' income was used by Mr Tomkins for his own benefit.

Notes to editors

1. A petition to wind up the companies was presented to the High Court on 11th September 2001 following enquiries conducted under Section 447 of the Companies Act 1985. The Official Receiver was appointed as provisional liquidator of the companies on that date.

2. The petition was presented under section 124 of the Insolvency Act 1986.

3. The Official Receiver has been appointed as liquidator of the companies and will be responsible for investigating the circumstances of the companies failures and the conduct of the companies directors.

4. The registered office of both companies is at 36B The Colonnades, Albert Dock, Liverpool, L3 4AA. Both companies traded from that address until September 2001. Cabot Houston was incorporated on 26th November 1999. Connaught was incorporated on 12th January 2001.

5. All public enquiries concerning the affairs of the companies should be made to the Official Receiver at

The Insolvency Service
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