TONY HETHERINGTON: Is £30,000 ‘whisky’ investment a glorified IOU?

Tony Hetherington is Financial Mail on Sunday’s ace investigator, fighting readers corners, revealing the truth that lies behind closed doors and winning victories for those who have been left out-of-pocket. Find out how to contact him below. 

Ms P.T. writes: I made an enquiry through the internet, looking for an Isa. I received a phone call from Nicholas James Finance Ltd, based in Canary Wharf, East London, offering an investment in whisky casks.

I made the investment and it all seemed fine. 

Then the same salesman called several times again, suggesting I might be interested in investing with Linc Drinks Ltd. 

Whisky was mentioned again, and I invested £30,000, which I was told was the minimum. 

I thought everything was fine until I received a message about your article regarding Linc Drinks. 

Tony Hetherington replies: In October, I warned that Linc Drinks was offering loan bonds to raise £3 million, with the prediction that the company would be worth £150 million by December and might be taken over by drinks giant Diageo, the owner of Guinness. I said then that this was complete rubbish, and I say it again today.

You did not even know that your money was going into loan bonds, which are nothing more than IOUs that can later be converted into shares in Linc Drinks, which has no stock market listing. You believed you were being offered more casks of whisky.

And you should never have been offered loan bonds anyway. Nicholas James Finance is not authorised by the Financial Conduct Authority (FCA) to sell investments to the public. Legally, it can only use a loophole which allows it to deal with people who are rich enough or experienced enough to take big risks. When I explained this, you told me: ‘I was not asked anything about my financial situation, as to whether or not I am a high-net-worth individual, or am experienced enough to judge the risks I was taking.’ If you knew you could face a total loss, you would never have invested.

You tried to call Jack Blackburn, the salesman at Nicholas James Finance, but there was no reply. You did get through to the investment company’s owner, Ashley Wilkinson, and he told you that Blackburn had left the company after being suspended.

Wilkinson is a business associate of Amit Kochhar, who was involved in setting up the marketing of the Linc Drinks loan bonds. Kochhar was also behind the sale of loan notes in cannabis firm Cannadex. Investors in Cannadex complained when interest failed to be paid, and they were then told their loan notes had been converted into shares that were not publicly traded. Does this sound familiar?

I put all this to Ashley Wilkinson but he offered no comment. You are not the only investor who dealt with Nicholas James Finance and was sold Linc Drinks loan bonds without being questioned about their investment experience. One told me: ‘I never had any type of warning about investing. I was told all monies were safe and bonded.’

The FCA told me: ‘We banned the mass-marketing of these high-risk products to ordinary investors, as they are only suitable for experienced investors who understand the risks and those who can afford to lose all the money invested.’

The FCA very rarely names companies that are targets for its enquiries but it has made an exception in the case of Nicholas James Finance. A spokesman said: ‘We are actively looking into this case. We would welcome any evidence from investors with concerns.’

I have provided some evidence to the FCA, and now I shall provide more. Anyone who has dealt with Wilkinson’s firm and is worried about their money, please go online to fca.org.uk/contact and report your experience. And watch this space as my own enquiries are continuing too.

Why did my Isa payment vanish?   

K.H. writes: I opened an Isa with Cynergy Bank and paid in £15,000. I wanted to add another £5,000 but could not log in with the account details the bank provided. 

I rang Cynergy and was told I could transfer £5,000 from my bank. I made the transfer, but had no acknowledgement so I rang again. 

I was told I had failed to answer their security questions correctly, so I still don’t know where my £5,000 has gone.

Missing money: A failed security question makes it difficult to track down £5,000

Tony Hetherington replies: You told me that you knew the answers to all the personal security questions, so you suspected there was some problem with the user ID. You knew your own bank had sent the £5,000.

I asked Cynergy to explain. One of the security questions you were asked was: ‘How much is in your Isa?’ You replied £15,000. But the person you were speaking to knew it held £20,000 because Cynergy had received your additional £5,000. So, the very question you wanted to ask about the balance was the one that caused the problem. Cynergy tells me it has been in touch with you to set up digital access.

If you believe you are the victim of financial wrongdoing, write to Tony Hetherington at Financial Mail, 9 Derry Street, London W8 5HY or email [email protected]. Because of the high volume of enquiries, personal replies cannot be given. Please send only copies of original documents, which we regret cannot be returned.