DISHONESTY, misleading statements and a massive trail of out-of-pocket investors.

Those are the allegations that caused a high court judge to shut down a web of five Warrington companies.

Their key trading name was First For Fragrance and they sold franchises to operate mini-perfume vending machines in pubs and clubs, from Aberdeen to Belfast and London.

They were wound up in the public interest so a full investigation of their finances can begin.

Key players in the business included next-door neighbours Malcolm Hague, aged 51, and Mike Anderson, aged 32, from Stockport Road, Thelwall, and Bryn Morgan, who is understood to have lived with his girlfriend in Longford, but a resident of Llandrindod Wells in Wales, and Paul Barnett, aged 53, from Worsley.

"There should be a clean sweep of the companies that these directors have been concerned with in this field," said barrister Louis Doyle, acting for the Department of Trade and Industry at Monday's hearing at Manchester County Court.

No-one turned up at court on behalf of the companies or the individuals involved. The companies traded from St James' Court, in Wilderspool Causeway, Crab Lane, in Fearnhead, Meadowcroft Way, in Leigh, and from Irlam.

At least 38 franchisees are known to have invested in the firms, each putting in around £20,000, for a total around three quarters of a million pounds.

Warrington was one of the final franchises sold, to a Runcorn taxi driver.

Investors were led to believe they would get high returns from a tried-and-tested business - but no successful original franchise ever existed, the court heard.

They were also given reference telephone numbers of franchisees for potential investors to contact.

"None of these things is true," said Mr Doyle. "One franchisee was only earning £20 a week. The references that are given are misleading or false."

Mr Doyle said there were 10 separate allegations against Mr Morgan for failing to co-operate fully with the investigation. He added that Mr Morgan had told them one company had not traded - then investigators found out that it had.

Promotional literature claimed the business had been trading for 10 years. But Mr Hague admitted to investigators that it had begun in 2001, the court heard, "When Mr Hague was asked to comment, he didn't want to," said District Judge Smith.

One of the franchisees, Rob Williams, a former firefighter from Redditch, Worcestershire, who lost a £20,000 investment, told the Guardian outside the court he was delighted with the ruling.

"We are now awaiting the result of the investigations into the finances of the firms and the conduct of the directors, and whether any action needs to be taken," said Mr Williams.

The three main companies wound up were First Install South Limited, Chanaz Ltd (formerly First for Fragrance Limited) and Fragrance International Supplies Limited. The non-trading but linked companies wound up were Vendible Solutions and First Consultants Limited.

Mr Morgan and Mr Anderson formerly worked for sunbed franchise firm Tan Kwik, which was based at Europa Boulevard. It was also wound up in the public interest, in the same courtroom, by the same judge, by the same investigators, last summer.