Four property investment companies based in Staffordshire, London, York and Peterborough have been wound up by the DTI.
Staffordshire-based Sterling Mansion (UK) and London-based Mansion Investments (which has already ceased trading) offered to help clients build a £1m buy-to-let property portfolio within a year in return for a fee of up to £33,000.
York-based SMI (Overseas) also advertised a scheme that would allow members to build a multi-million pound property portfolio.
Three Peterborough-based subsidiaries of one company have also been wound up.
Turningpoint Seminars operated £6,000 courses for prospective investors, teaching them how to acquire buy-to-let properties without payment of a deposit.
Portfolios of Distinction offered a similar scheme to build a £1m property portfolio for a fee of up to £50,000.
CM2 Services offered an investment scheme to members of Portfolios of Distinction and Turningpoint Seminars, allowing them to invest in the purchase of uncollected debts.
Investors were told the collection of debts would provide returns of up to 100% within 12 months.
The petitions to wind up the companies followed confidential investigations under Section 447 of the Companies Act 1985.
On the application of the Secretary of State, the High Court appointed the Official Receiver as provisional liquidator of the companies pending the full hearing of the petitions on 11 May 2005.
No further information will be made available until that time.
References: EGi News 14/04/05
