Greenwave Bio Ltd (Greenwave), a company that misled investors by claiming to sell bio-fuel technologies and promising an 800 per cent return on investment, was wound up on public interest grounds in the High Court on 24 February 2014.
The winding up order follows an investigation by the Insolvency Service.
Shares in Greenwave had been listed on the now defunct First Quotation Board of the Frankfurt Stock Exchange. It claimed to be a holding company for bio-fuel technologies in Central and South American waste energy projects.
The company offered investors projected lifetime returns of over 800 per cent and invited them to tap into a 30 per cent year-on-year growth industry. However, the investigation found no evidence of Greenwave having any involvement in the bio-fuel or waste management industries.
The Official Receiver has been appointed as the company liquidator. His role is to protect and realise the assets of the company and investigate the conduct of those operating the company.
Commenting on the case, David Hill, a Chief Investigator at the Insolvency Service, said:
Greenwave misled investors by claiming to be part of an international company and exaggerating the rate of return on investment. This would have attracted investors keen to invest in such a high yielding and ethical company.
The winding up of this company shows that the Insolvency Service will not stand to one side while the public gets scammed by chancers riding on the back of ethical investment."
Deputy Judge J Baldwin QC, who made the winding up order, said the claims made by the company had been wholly misleading and likely to have duped potential traders and persons interested in the company.
The court also heard that the persons behind Greenwave may be in the process of attempting to move their scam operations to another jurisdiction, as Greenwaves website recently recorded that it was a Canadian Registered Company.