Two bosses who dishonestly secured £9 million from people who thought their money was invested in the American property market have been banned for a total of 22 years
Kevin Antony Neil (57) and Peter Leonard Shuttleworth (37) were each handed down 11-year directorship disqualifications by Judge Burton at the High Court of Justice in London on 11 February 2020.
Effective immediately, Kevin Neil and Peter Shuttleworth are banned from acting as directors or directly or indirectly becoming involved, without the permission of the court, in the promotion, formation or management of a company.
Kevin Neil and Peter Shuttleworth’s misconduct came to the attention of the Insolvency Service after the company they were directors of, Colonial Capital Group PLC, entered into liquidation in February 2018.
Investigators uncovered that Colonial Capital Group, based in Chelmsford, Essex, was incorporated in February 2014 and the company invited investors to subscribe to bonds with the incentive of a 12% fixed interest rate per annum.
Bondholders were told their payments would be invested into Colonial Capital Group, who would then forward the funds to a connected American company over whom Colonial Capital Group would hold the security.
The American company would use the money to buy and renovate distressed properties in the USA and once the properties were renovated, they would be rented out or sold. Income secured from rents or proceeds of the sale would then be passed back to the bondholders.
Between February 2014 and March 2017, Colonial Capital Group secured just over £9 million from bondholders.
Investigators, however, unearthed that no funds were invested into the connected American company over whom Colonial Capital Group would hold the security.
£6.6 million was paid, via an unsecured loan, to a separate company in the UK that shared the same directors as Colonial Capital Group. A further £2.3 million was paid to a separate connected American company over whom Colonial Capital Group held no security.
Enquiries found that Colonial Capital Group had 244 investors and they are owed approximately £11 million, which includes unpaid interest due.
Dave Elliott, Chief Investigator for the Insolvency Service, said:
Notes to Editors
Kevin Antony Neil’s date of birth is March 1962.
Peter Leonard Shuttleworth’s date of birth is October 1982.
Colonial Capital Group PLC. (Company Reg no. 08874920).
Persons subject to a disqualification order are bound by a range of restrictions.