IS closes down property scam

Serious BSing.

By Insolvency News, 1 June 2009. Posted in Industry

A Staffordshire-based company which solicited investment from members of the public by providing false and misleading information has been wound up in the High Court following an investigation by Companies Investigation Branch.

Rockstone Property Limited purported to be a property investment company specialising in the ownership and management of residential properties in cities that have been awarded European 'Capital of Culture' status. It issued a prospectus describing a business model whereby the company and its investors would benefit from an increase in the value of properties purchased in such cities.

The investigation found that the prospectus falsely claimed that the company had secured mortgage funding to purchase properties; gave false details of the company's trading premises and share capital; disguised the true identity of the company officers; and misrepresented the company's Real Estate Investment Trust status. The company provided no commercial benefit to persons who invested in it and all monies paid to the company by investors were immediately withdrawn.

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