Director banned for investment scam

A businessman has been banned from being a company director for eight years for his part in an Australian wheat investment scam.

Worcester-based director Robert Ross White ran Agri Firma, a company which misled its investors to believe a “legitimate and valuable lease” had been purchased for them for farmland in either Lithuania or Australia. The High Court found no evidence that any land was purchased in respect of the Lithuanian investment and the land purchase in Australia was never completed.

Investors had been assured of 9% farming income and 11-15% capital gain from the Australian wheat investment, in spite of professional advice that judged this was “unachievable” and investor capital being reduced by undisclosed 65% up-front marketing and other fees.

The company went into liquidation in July 2014 with an estimated deficiency of at least £538,667 and AUD$661,500 (£400,000).

Fellow director Richard John Lyon Henstock was previously banned for nine years. Proceedings are being contested by a third alleged director, with a trial expected in February 2018.

Mark Bruce, chief investigator at the Insolvency Service, said: “In this case, the pooling of investors’ funds with that from other associated investment vehicles has prevented any ability to trace most of Agri Firma’s investment capital through various offshore accounts.

“Both registered directors have abrogated their duties, facilitating the scam which this investment became. These disqualifications should give a clear message regarding such behaviour.”