Fine Wine
£185,000 Fine Wine Investment Loss
An investor placed £185,000 into a managed fine wine portfolio over two years. Communication faltered, documentation was unclear and the company later entered insolvency proceedings.
- Lost
- £185,000
- Recovered
- £137,500
- Recovery
- 74.3%
- Investment type
- Fine Wine
- Recovery
- 74.3%
Background
A UK-based investor was introduced to a fine wine investment opportunity after being told that their portfolio would be professionally managed and that the underlying wines were held securely on their behalf.
Over a period of approximately two years, the investor invested a total of £185,000.
The investor subsequently became concerned when communications from the investment company became increasingly difficult to obtain and requested documentation relating to the ownership and storage of the wine.
The company later entered insolvency proceedings.
The Problem
The investor had retained emails, investment statements, payment records and promotional material but was uncertain about the legal position of the investment and what recovery options remained available.
BJM Recovery's Role
BJM Recovery reviewed the available documentation and reconstructed the investment history.
The investigation considered:
- Original investment agreements
- Payment records
- Correspondence
- Portfolio documentation
- Statements provided to the investor
- Parties involved in the transaction
- Available information concerning the underlying assets
- Potential recovery avenues
The information was then used to develop a recovery strategy.
Outcome
The investor ultimately received £137,500, representing approximately 74.3% of the original £185,000 investment.
Client Experience
“After losing such a substantial amount of money, I had no idea where to turn. BJM Recovery gave me a clear understanding of what had happened and kept me informed throughout the process. The outcome was far better than I expected.”
Key Lesson
Investors should retain all documentation relating to alternative investments, including contracts, invoices, payment records, correspondence and information concerning the underlying asset.
Case studies are presented for demonstration purposes and are illustrative of the types of matters a specialist recovery team may be asked to investigate. Every investment recovery matter is assessed individually. The circumstances of the investment, the available evidence, the parties involved and the applicable recovery process will determine the appropriate course of action.
Have you experienced something similar?
Investment losses can be complex and every situation is different. If you have lost money through an investment that has failed, become insolvent or stopped communicating, our team can assess the information available and discuss the potential next steps.