Post by macca on Dec 7, 2021 12:59:01 GMT
if you read the thread Bruce linked to it's clear that he did farm out the standard builds to the separate company that he set up. But the punters still had to pay in advance, and those are the punters who've been stiffed. The custom builds he handles himself and they are still ongoing (albeit people have been waiting years now).
He has said all the custom builds will still be fulfilled, but not the standard builds. Anyone who paid for a standard unit and didn't yet receive it lost their money when the company went into liquidation.
Looks like he was paying himself a salary out of the company and took a directors loan out of it too. You don't do that if the company is short of working capital which it clearly was. You wait until the company is in a comfortable situation capital-wise and is then able to ride out any downturns.
Looks to me like they sold a few PSUs and then decided there was enough potential revenue to employ four additional people, rent and outfit premises, and pay him out a salary as a consultant and a twenty grand loan.
Naïve or a scam, you decide.
FWIW I think this is mostly incompetence, not a scam. taking a Director's salary and a loan from a new brand new business that isn't yet firmly established is not a good idea but it's not illegal.
There are people out there with businesses that have never made any profit but the company is kept going for years as a zombie whilst the owner drives about in a new Range Rover telling everyone who'll listen that they're a Managing Director. Usually they are people who are effectively unemployable. They won't be living in Council flat either.