Ponzi Scheme Uncovered in Ireland: High Court Freezes Assets Amid Claims of £2m UK Property Portfolio
Dublin-Based Company Accused of Operating Ponzi Scheme
A Dublin-based company, Irish Gold and Silver Bullion Ltd (IGSB), has been accused of operating a Ponzi scheme. The company’s director and sole shareholder, Nicholas Wickham, is facing claims that he misapplied customer funds for his own benefit.
Investigation Reveals €1.03m in Customer Funds Defrauded
Irish Gold and Silver Bullion Ltd (IGSB) was wound up last year, and a High Court liquidator’s investigation has revealed that the company defrauded customers out of €1.03 million. Chartered accountant Myles Kirby, appointed as the company’s liquidator, has brought proceedings against Wickham, alleging that he recklessly got customers to invest in IGSB, which was “hopelessly insolvent”.
Allegations Against Wickham
Wickham is accused of:
- Concealing the true financial situation of the company
- Making false representations to investors that their funds would be repaid
- Operating a Ponzi scheme for several years, with payments made by customers used to make payments to earlier investors
Investigation Reveals Misapplication of Customer Funds
Kirby’s investigation has revealed that Wickham allegedly misapplied customer funds in favour of Hamden Development Homes UK Ltd, a company he is said to control. A temporary freezing order, known as a Mareva injunction, was granted by Mr Justice Brian O’Moore on Tuesday, preventing Wickham and the second defendant from reducing their assets below €1.03 million.
Significant Assets in the UK
The court heard that Wickham has significant assets in the UK, including several properties in Watford worth up to £2m (€2.38m). It is alleged that Wickham operated a similar business in the UK, which was also dissolved, and that he faces legal claims from customers in that jurisdiction.
Case Returns in September
The case is returnable to a date in September, and Mr Justice O’Moore also imposed an order restricting the media from publishing details about the case until after midnight on July 27th. The judge granted Wickham permission to apply to vary the freezing order on notice to Kirby.