Cask Spirits Global Limited, a whisky investment firm, has been ordered to cease operations by the High Court in London following an investigation that uncovered a significant investment scam. The company allegedly defrauded victims out of at least £97,249 by selling casks of whisky that investors did not legally own.
The probe revealed that convicted fraudster Craig Brooks, who was previously jailed in 2019 for his involvement in a £6.2 million fraud, was secretly managing Cask Spirits Global Limited. Brooks, who had been banned from being a company director, reportedly operated under pseudonyms to evade detection and promoted the firm online as Cask Whisky Ltd.
Investors were allegedly pressured into purchasing casks with promises of high returns. However, many of the barrels either did not exist, were sold at inflated prices, or were sold to multiple individuals. According to the Insolvency Service, only four out of 17 identified customers received valid ownership documentation for the casks they believed they had purchased. Some received certificates for non-existent casks, while others were issued documents in the company's name rather than their own.
Cask Spirits Global Limited, purportedly run by Brooks's father-in-law Paul Hutchins, a sole listed director, also failed to comply with regulatory requests, withholding 27 out of 29 requested accounting documents. The company operated from undisclosed bank accounts, used a website under a non-existent company name, and provided no reliable avenues for customer complaints or refunds. Investigators found no evidence of residence at listed addresses.
Brooks, who previously served a prison sentence for defrauding 350 victims in a carbon credit and earth metals scam, collaborated with his sister-in-law, Sydnie, on this latest venture. A BBC investigation last year exposed Brooks's involvement, leading to police initiating an investigation known as Operation Gamboge into three companies linked to the scam. No charges have been filed yet.
The scam preyed on the legitimate practice of purchasing whisky casks as an investment, where casks are bought young and expected to increase in value as they age. The UK whisky industry operates without official regulation, making it a target for fraudulent schemes. Among the victims was Alison Cocks of Montrose, who invested £103,000 in four casks, some of which were found not to exist or had already been sold to others. She reported that after expressing interest in selling, the company became unresponsive.
Mark George, chief investigator at the Insolvency Service, stated that the investigation revealed serious concerns about the company's operations and the harm caused to customers. He emphasized that the company posed an ongoing risk and that authorities would act against untrustworthy companies handling public money. City of London Police had previously raided offices connected to Cask Whisky and issued an appeal for clients to come forward.