On June 21, 2022, before ICC Judge Jones, Scothop Limited was dissolved in the public interest in the High Court of Justice Business and Property Courts.
The company’s liquidator has been designated as the Official Receiver.
The court was informed that Scothop Limited, also known as Genesis11, had established itself as a licenced online broker with the capacity to trade various commodities.
But before significant losses to investors were discovered, the Insolvency Service received complaints about the firm’s methods and started a secret investigation into Scothop Limited.
Investigators found that clients were urged to make investments with the online broker and frequently saw their investments grow in value, encouraging them to make additional investments.
Investors who attempted to withdraw their money either paid a hefty fee or saw a significant decline in the value of their investments.
If investors continued to withdraw money or refused to pay the fee, Scothop Limited would subsequently stop communicating with them.
Further investigation revealed that Scothop Limited maintained funds in segregated third party accounts, as reported.
However, money was kept in accounts held in the names of people who weren’t listed as business officers.
The individuals involved in, or in charge of, the company’s affairs and management did not interact with the Insolvency Service during the investigation and court proceedings, and the financial regulator was unaware of Scothop Limited.
At least seven investors, including one who lost nearly £100,000, provided information to the investigators, totaling losses of at least £263,000.
Judge Jones concurred during the winding-up hearing that the company had obtained funds through deceptive and false means and had traded without commercial probity.
The Judge further remarked that Scothop Limited’s actions lacked transparency and that there were no adequate documents to prove that the money from investors had been used appropriately or to determine what happened to any money received.
The Official Receiver as Liquidator’s tasks include working to recover and sell the company’s assets so that creditors can receive their money back.
The Insolvency Service’s Chief Investigator, Edna Okhiria, stated:
According to our findings, Scothop Limited deceived investors by fraudulently obtaining thousands of pounds while purporting to be regulated.
Thank goodness, Scothop Limited was shut down by the court before further investors lost their money, realising the seriousness of the company’s activities.
We hope that this conclusion will serve as a reminder to other dishonest investment businesses that we have the authority to end unethical behaviour.