RAM was discovered to have received over £2m from practices that were “entirely misleading to their investors”, with the majority of the funds used to pay the firm’s directors.
A further £1m was obtained by RAM through the Optimum Retirement Benefits Plan pension scheme, which has been linked to pension liberation activity, where pensions can illegally be accessed before they are due.
Closely linked to RAM, seen via a £200,000 payment, VAM sold bonds to investors while there was no evidence that it “ever commenced any property development projects”.
Finally, Merydion Corporation gained access to £300,000 worth of investments through the aforementioned pension scheme, using the funds to invest in hotel properties that its director owned under separate firms.
David Hill, chief investigator at the Insolvency Service, said: “The courts recognised the severity of their misconduct and these companies have been wound up, putting a stop to this ongoing pattern of harmful business practices.
“We also urge anyone considering investments of this type that they should always take independent financial advice before doing so.”