International bio-diesel
companies, Greenleaf Global, closed down following Government investigation
Two connected
companies, Greenleaf Global Plc (‘Greenleaf UK') and
Greenleaf Global Togo Sarl ('Greenleaf Togo'),
which perpetrated an international investment scam in the UK and
Togo, West Africa have been wound up in the public interest by the
High Court following an investigation by Company Investigations,
part of the Insolvency Service.
Greenleaf Global plc had previously been put into provisional
liquidation in March 2012 (see press release).
The investigation found the two companies ran a Jartropha
Plantation– a bio-diesel project - in the West African country and
misled investors by promising high returns on investment while
knowing this was not true. Oil extracted from the fruit of mature
trees can be used to produce bio-diesel.
The court heard that Greenleaf Togo acted as the main leaseholder
of the Jatropha plantation while Greenleaf UK acted as an agent in
marketing the scheme to the public. The amounts taken from
investors amounted to £8.2million. Plots of land in Togo were
leased for the cultivation of Jatropha trees from seedlings.
Greenleaf UK had also recently began marketing a scheme in Ghana
for the commercial production of maize.
The petitions to wind up the companies were presented by the
Secretary of State for Business, Innovations and Skills.
The investigation also found:
the companies were part of a business operating and promoting an
unauthorised collective investment scheme in breach of the
Financial Services Markets Act 2000 (“FSMA”). The Financial
Services Authority (FSA) supported the Secretary of State’s
application to wind up Greenleaf UK in the public interest in this
respect. a number of misleading statements had been made to
investors, including claims that they would receive a return on
their investments within 12 months, whereas no such returns (from
the proceeds of any harvest) had been made. Other
misrepresentations included a claim that a harvest had already
been undertaken (in June 2010) resulting in returns which had
already been paid to investors. Investors were told that they
could expect to receive a return of up to 20% in the first year.
These expected rates of return were not evidence based. Greenleaf
UK made, in uniform distribution to various investors, on-account
payments at a time when no commercial or other harvest had taken
place in respect of the plantation.
Giving judgement in the High Court, Registrar Barber stated that
there were “…numerous examples of false misrepresentations in the
evidence and that the on account payments to investors were
clearly made to encourage further investment in the scheme”.
Commenting on the case, David Hill, Case Manager with Companies
Investigations (South) said:
“it was clear, and the court agreed, that these companies set out
with a clear intention to mislead would-be investors. This
decision sends a clear message that we will continue to crack down
on companies which deliberately mislead the public in this way”
Ends
Notes to Editors
1. On the 28 February 2012, the Secretary of State presented
petitions against the two companies seeking an order to wind up
the the companies in the public interest under Section 124A
Insolvency Act 1986. 2. On 23 March 2012, the Official Receiver
was appointed Provisional Liquidator of Greenleaf UK only. The
registered office address of Greenleaf Global PLC (Greenleaf UK)
is Building 3, Crane Mews, Gould Road, Twickenham, TW2 6RS. 3. The
company was incorporated on 4 March 2010. The registered office
address of Greenleaf Global Togo Sarl (Greenleaf Togo) is at 900
Avenue Franz Joseph Strauss, Nyekanokapoe, Lome, Togo, West
Africa. 4. 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. Further information about the work of The Insolvency
Service is available from www.bis.gov.uk/insolvency 5. All public
enquiries concerning the affairs of the company should be made to:
Stuart Tatham, The Insolvency Service, Public Interest Unit, 21
Bloomsbury Street, London WC1B 3SS, PIU.OR@insolvency.gsi.gov.uk .
6. Media queries should be directed to Kathryn Montague, Media
Relations Manager, or Ade Daramy, Press Officer on 020 7596 6187.
Contacts:
Ade Daramy
Phone: 020 7596 6187
ade.daramy@insolvency.gsi.gov.uk