MELANIE JOHNSON CONDEMNS £3M HOLIDAY INTERNET SCAM
12 Dec 2002 02:45 PM
Six companies wound up by the High Court following DTI investigation
Hundreds of holidaymakers were misled into paying thousands of pounds
for huge holiday savings which failed to materialise by six companies
that have been wound up by the High Court in the public interest
following an investigation by the DTI's Companies Investigation
Branch.
The companies, based in the UK and overseas, were all related and
offered discounts for luxury holidays all over the world holidays and
may have taken over £3m over a two year period.
Consumer Minister Melanie Johnson said she was delighted with the
outcome of the investigation:
Miss Johnson said:
"Many families have had their holiday dreams ruined. People need to
beware of unscrupulous holiday clubs that promise a lifetime of
impossibly cheap holidays in exotic locations. This is a lesson to
unscrupulous operators that we will take legal action to close them
down".
Members of the public were invited to sales presentations by the
offer of a "free" holiday which they subsequently found difficult to
obtain. At the presentations they were persuaded to purchase a
so-called "key" - a user name and password - giving access to
web-sites which were said to offer incredible savings on holiday
accommodation. There were no cancellation rights.
The initial asking price for a "key" was £6,000, but the price could
be reduced to £2,000 depending on whether membership was "in
perpetuity" or for life or a fixed number of years (usually 25).
Although documents were deliberately withheld from the investigation,
it emerged that much of the information given to potential clients
was false or misleading. For example, Travelmasters Limited falsely
claimed to be both ABTA and ATOL bonded and to have originated from
the former well known holiday chain "Intasun". The holiday savings
did not match the representations made and money raised from the 1200
or so members was traced by the investigation to bank accounts of CCH
International Limited in Gibraltar and Spain.
Of the £413,568 that was sent to Gibraltar, some £234,065 was paid to
Mr Paul Charleston who resides in Majorca. It is not known what
happened to the money sent to Spain.
Notes For Editors
1. Travelmasters Limited was incorporated on 7 June 2000. Its
registered office is South Central, 11 Peter Street, Manchester, M2
5LG, the address of accountants. The directors of the company are Mr
Paul Charleston and Mr Nigel Moore who is also the secretary of the
company.
2 Mediterranean Marketing Limited was incorporated on 21 January
2000. Its registered office is Levy Gee South Central, 11 Peter
Street, Manchester, M2 5LG, the address of accountants. The directors
of the company are Mr Paul Charleston and Mr Nigel Moore who is also
the secretary of the company.
3. Callmasters UK Limited was incorporated on 12 January 2000. Its
registered office is Levy Gee South Central, 11 Peter Street,
Manchester, M2 5LG, the address of accountants. The directors of the
company are Mr Paul Charleston and Mr Nigel Moore who is also the
secretary of the company.
4. CCH International Limited was incorporated on 24 September 1998 in
the Commonwealth of the Bahamas as an International Business Company.
Its registered office is Bolam House, King and George Streets,
Nassau, Bahamas.
5. Intersun Limited was incorporated on 8 June 2001. Its registered
office is 9 Wimpole Street, London, W1G 9SR, the address of
accountants. The directors of the company are Mr Wayne Anthony Cragg
and Mr Peter John Farnsworth who is also the secretary of the
company.
6. Leisuremasters Limited was incorporated on 10 December 2001. Its
registered office is 9 Wimpole Street, London, W1G 9SR, the address
of accountants. The directors of the company are Mr Wayne Anthony
Cragg and Mr Craig Bosio who is also the secretary of the company.
7. The business operated from a number of locations, namely:
- Peel House, 2 Chorley Old Road, Bolton, Lancashire, BL1 3AA.
- 1 Enfield Road, Ellesmere Port, South Wirral, Chester, CH65 8DA.
- 207 St George's Road, Bolton, Lancashire, BL1 2PG.
- Bridge End Chambers, Front Street, Chester-le-Street, Durham, DA3
3QW.
- Olympian House, 82 High Street, 2 Connahs Quay, Deeside,
Flintshire, CH5 4DD.
- First Floor Offices, Earl Buildings, 12 Earl Road, Mold,
Flintshire, CH7 1AN.
- Suite 18, Portland House, Glacis Road, PO Box 847, Gibraltar.
- Residencia Green Park, Calle Murillo 1, 07180 Santa Ponsa, Palma
de Mallorca, Balaeres, Spain.
8. Initially potential clients were referred to a web site at
www.qualycon.net Subsequently the following
web site addresses were employed: go-travelmasters.com;
travelmasters.com; intersun.co.uk; leisuremasters.co.uk;
leisuremasters.net.uk.
9. The petitions were presented under Section 124A of the Insolvency
Act 1986 on grounds of public interest. When the public is at risk,
the Secretary of State may ask the Court to stop a company trading at
once by appointing a provisional liquidator and winding it up. This
is the quickest action the Department can take. The Court demands
detailed and substantial evidence for this very serious step.
10. The petitions were issued following investigations carried out by
the Department's Companies Investigation Branch (CIB) under section
447 of the Companies Act 1985 which enables investigators to require
a company to produce its records. If it is in the public interest the
Secretary of State may use the information obtained to petition the
Court to wind up a company or to disqualify the company directors.
11. On the application of the Secretary of State the Court appointed
the Official Receiver as provisional liquidator of the companies on 5
July 2002. The role of the Official Receiver was to protect and
preserve the assets and financial records of the companies until the
hearing of the winding-up petitions.
12. The petitions were initially opposed by all of the companies with
the exception of CCH International Limited. A five day hearing was
accordingly fixed by the Court to commence on 29 April 2003.
13. The only evidence produced by the companies however was a
statement by Mr Charleston opposing the petitions against
Travelmasters Limited, Mediterranean Marketing Limited and
Callmasters UK Limited.
14. Meanwhile the unopposed hearing of the petition against CCH
International Limited took place on 2 October 2002 whereupon a
winding up order was made against the company.
15. In the absence of any evidence opposing the petitions against
Intersun Limited and Leisuremasters Limited application was made to
hear these petitions on 9 October 2002. They both came on before Mr
Registrar Jacques. There was evidence that Leisuremasters Limited had
continued to operate after the appointment of the provisional
liquidator and in ordering the companies into compulsory liquidation
Mr Registrar Jacques commented:
"These are thoroughly disreputable companies undertaking thoroughly
disreputable practices and it is just and equitable for the companies
to be wound up."
16. By virtue of the winding up orders the Official Receiver is now
liquidator of all six companies and has a responsibility to
investigate why they failed and the conduct of the directors in
relation to their affairs.
17. All public enquiries concerning either company should be made to:
THE OFFICIAL RECEIVER, Public Interest Unit, 21 Bloomsbury Street,
London WC1B 3SS, Tel No: 020 7637 1110
Further information on company investigations is available from
http://www.dti.gov.uk/cld/comp inv.htm
Public Enquiries: 020-7215 5000
Textphone (for people with hearing impairments): 020-7215 6740
http://www.dti.gov.uk