What happens when a “low risk” company that you’ve invested in goes into liquidation?

It could have failed for many reasons, not necessarily scam related, but whichever it is, investors’ losses can be life changing

One action that investors can take is to ensure that a liquidator is appointed who will properly investigate recovery options, by:

  • obtaining and reviewing solicitors' and accountants' files, paper and electronic records, and
  • following the flow of funds through bank accounts, to
  • finding out where the investment monies have gone, and
  • ascertaining who, if anyone, is now holding assets bought with those monies. These may include assets transferred to and held by associates, trusts and off shore entities which can then be repatriated

The case of GCW Funding Limited may be one where those actions are required

According to the Official Receiver’s Report, one of the company’s two solicitor directors has said that the company was supposed to provide a low risk way for customers to increase their net worth by loaning monies to the company, which would use a linked third party to invest in foreign stock markets, with a return of between 1 and 5% per month

Perhaps unsurprisingly, from 2016 onwards, the linked party failed to generate sufficient profits to pay the expected returns to investors

The Report doesn’t say why this occurred, nor what happened after that, but in March 2019, the company was wound up by the Court on the petition of an investor, by which time it had debts of more than £7 million

Chris Jones, a partner at law firm Gunnercooke LLP, who acted for the petitioning creditor, is inviting people who have paid money to GCW Funding Limited and have suffered a loss to learn more about what can be done.

Chris can be contacted on 03302 231 715 or alternatively emailed at christopher.jones@gunnercooke.com