On June 21, 2022, before ICC Judge Jones, Scothop Limited was dissolved in the public interest in the High Court of Business and Property Justice.
The liquidator of the company has been appointed as judicial administrator.
The court was told that Scothop Limited, also known as Genesis11, had established itself as a licensed online broker with the ability to trade in various commodities.
But before significant losses for investors were uncovered, the Insolvency Service received complaints about the firm’s methods and opened a secret investigation into Scothop Limited.
Investigators found that customers were encouraged to make investments with the online broker and frequently saw the value of their investments increase, encouraging them to make additional investments.
Investors who attempted to withdraw their money either paid high fees or saw a significant drop in the value of their investments.
If investors continue to withdraw money or refuse to pay the fee, Scothop Limited will subsequently cease communicating with them.
Further investigation revealed that Scothop Limited was holding funds in separate third party accounts as noted.
However, the money was kept in accounts held in the names of people who were not listed as corporate officers.
Those involved in or in charge of the affairs and management of the company did not interact with the Insolvency Service during the investigation and legal proceedings, and the financial regulator was unaware of Scothop Limited.
At least seven investors, including one who lost nearly £100,000, provided information to investigators, totaling losses of at least £263,000.
Judge Jones agreed at the winding-up hearing that the company obtained funds through deceptive and false means and traded without commercial probity.
The judge further noted that the actions of Scothop Limited lacked transparency and that there were no adequate documents to prove that investors’ money had been used appropriately or to determine what it was. happened to the money received.
The official receiver’s duties as liquidator include recovering and selling the company’s assets so that creditors can get their money back.
The Insolvency Service’s chief investigator, Edna Okhiria, said:
According to our findings, Scothop Limited deceived investors by fraudulently obtaining thousands of pounds while pretending to be regulated.
Thank goodness Scothop Limited was shut down by the court before other investors lost their money realizing the seriousness of the company’s business.
We hope this finding serves as a reminder to other dishonest investment firms that we have the power to stop unethical behavior.