Cask Spirits Global Limited, a whisky investment company, has been shut down by order of the High Court in London after an investigation uncovered that a convicted fraudster was secretly running the firm. The company defrauded victims of tens of thousands of pounds by allegedly pressuring them into investing in casks of whisky that they never actually owned.
Craig Brooks, who was previously jailed in 2019 for his role in a £6.2 million fraud, was found to be behind Cask Spirits Global Limited despite being banned from being a company director. Brooks operated under pseudonyms, including Craig Arch, to conceal his involvement. The company operated online under the name Cask Whisky Ltd, but victims' payments were directed to Cask Spirits Global Limited.
The Insolvency Service reported that Cask Spirits Global Limited received at least £97,249 from investors, though the actual amount is believed to be higher. The company, officially listed with Paul Hutchins (Brooks's father-in-law) as the sole director, failed to provide investigators with a substantial portion of the accounting documents they requested.
Of the 17 customers identified by the Insolvency Service, only four received valid ownership documentation for the casks they had purchased. Some investors were given certificates for non-existent casks, while others received documents made out to the company instead of their own names. In some instances, certificates referenced warehouses not affiliated with Brooks's company or provided false storage locations.
Cask Spirits Global Limited also operated under a different name on its website, with no record of such a company existing. Investigators found no evidence of the addresses listed by the company, and it utilized multiple undisclosed bank accounts. The firm also failed to file accounts consistently and lacked a clear process for customer complaints or refunds. High-pressure sales tactics, social media advertisements, and cold calls were employed to target potential investors.
Brooks, who had previously been jailed for a year for his involvement in a scam that defrauded 350 victims out of £6.2 million through investments in carbon credits and earth metals, collaborated with his sister-in-law, Sydnie, in this latest scheme. A BBC investigation last year exposed Brooks's control over the whisky firm, leading the police to investigate three associated companies under an operation known as Operation Gamboge. No charges have been filed in connection with Operation Gamboge.
The investment model involves purchasing a cask of whisky upon its production with the expectation that its value will increase as it ages. The UK whisky industry is not officially regulated, making it susceptible to fraudulent schemes. Alison Cocks, a victim from Montrose, invested a total of £103,000 in four casks, some of which did not exist. She recounted being reassured by an online portfolio showing her investment growth, but encountered difficulties when attempting to sell. She later discovered that one of her most expensive cask purchases did not exist, and another had been sold to a different buyer.
Mark George, chief investigator at the Insolvency Service, stated that investigations revealed serious concerns about the company's management and the harm inflicted upon customers who invested in good faith. He emphasized that the company's inability to be trusted with people's money would not deter the Insolvency Service from taking action. The City of London Police had previously raided the premises of Cask Whisky and issued a public appeal for clients to come forward.