Heritage FA Limited which marketed and sold colored diamonds and other commodities to the public for investment has been ordered into liquidation on the grounds of public interest, according to a press release from the Insolvency Service.
An investigation found that vulnerable and elderly individuals were being targeted and aggressively sold investments in fancy colored diamonds, rough diamonds, gold, fine art and oil wells.
The company, whose sales team was located in Canary Wharf, charged investors a 1.5% arrangement commission for diamond trades.
The investigation discovered that at least £7 million (US$9.9 million) was raised from investors generating commission of over £2.5 million (US$3.5 million) before the company was forcibly closed by the Insolvency Service’s intervention.
The public interest grounds for winding up the company were its lack of commercial probity by participating in a wider scheme involving the sale of fancy colored diamonds to the public for investment and making unfounded and misleading statements to induce people to invest in diamonds and other commodities, explains the Insolvency Service.
