Two companies – New Horizon Energy Limited and New Horizon Energy LLC (incorporated in the State of Illinois USA) – that claimed to offer significant investment opportunities, have been wound up in the High Court following an investigation by Company Investigations of the Insolvency Service
Both companies sought investments from members of the public for a percentage share ownership of oil wells in the United States.
The investigation found investors were promised large returns to be paid monthly, based on the volume of oil produced from each well. They were told that the wells were already producing oil at a substantial rate. The reality was that the wells hadnt been drilled and therefore were not producing oil. Investors had been chasing the companies for information about their investment and were given updates detailing delays and problems with a constant reassurance that the wells would be producing shortly.
There was much confusion as to which company the investments were with, New Horizon Energy Limited or New Horizon Energy LLC. The two companies overlapped and both would provide updates to investors, The director of New Horizon Energy Limited and New Horizon Energy LLC failed to co-operate fully with the investigation. He failed to deliver accounting records for both companies.
Although some 3.1million was received from investors, the investigation was unable to identify any investor funds that were applied by the companies in furtherance of the investment opportunities for which the investors had paid their money.
David Hill, Chief Investigator said that:
Businesses such as these must be brought to an end to protect investors and rid the business environment of companies that operate with dishonesty.