A FRAUDULENT art investment company has been wound up by the courts after a con worth nearly £1million.

Gem Tobin Ltd, based in Orford, and York-headquartered Dionysus Design Services Ltd were found to have abused investors’ funds.

The High Court heard that the two businesses came to the attention of the government’s Insolvency Service as a result of previous investigations into associated companies – Halifax Mannin Ltd and Hey Design Services Ltd.

Warren Road-based Gem Tobin and Dionysus Design Services received a number of payments from people who were persuaded to make investments in works of art, supposedly by renowned painters.

The scheme is believed to have been operated from Spain or Morocco by a separate business known as Asset Consulting Service or Asset Consulting Group – which was subjected to a public warning by financial regulators.

Between October 2018 and June 2019, Gem Tobin received approximately £700,000 from investors, while Dionysus Design Services received more than £200,000.

While the vast majority of this £900,000 was paid out of the companies’ bank accounts, investigators have not been able to determine how these funds were spent.

Individuals believed to be heading up the businesses have not cooperated with enquiries by the authorities.

District judge Ranj Matharu wound up the companies in the public interest on Monday, October 7 – with the official receiver appointed as liquidator.

David Hope, chief investigator for the Insolvency Service, said: “These companies have acted cynically in accepting almost a million pounds from members of the public, many of whom are elderly and vulnerable people, with no evidence to indicate that the investment being offered had any value or was likely to generate any return for the investors.

“This continues a pattern of behaviour that was identified in relation to other companies.

“Thankfully, the courts have now put a stop to their activities, preventing further harm – and anyone approached by, or thinking about making an investment with, Asset Consulting Services or Asset Consulting Group should read the warning issued by the Financial Conduct Authority and take independent financial advice before making any decisions."