Two finance companies have been wound up in the public interest after they deceived people into investing a total of at least £3 million in an unprotected bond scheme. Satchi Holdings PLC made false assurances of secure investments in asset-backed loan notes to its investors, while Hartreel Ltd, engaged in the same deceitful practice. These investors received minimal interest payments, no return of their investments, and risked losing their life savings.
Satchi Holdings PLC and Hartreel Ltd were wound up at the High Court of Justice on 30th January following an investigation by the Insolvency Service which uncovered the fraud. The Official Receiver was appointed as liquidator of the companies.
Satchi Holdings PLC, run by brother and sister Michael Haston and Jennifer McQueen, operated from Mayfair, London. Hartreel Ltd, on the other hand, was registered in Bridgend, Wales, and was run by Haston. The latter was once described as a ‘wonderkid’ investor based in Edinburgh. Only recently in 2020, Haston was reported by the BBC and other outlets to have invested £2m in a government-backed spaceport in Shetland through another of his ventures, Leonne International. The Financial Conduct Authority had previously issued a warning to investors about Leonne. Haston, also known as McQueen, was also facing fraud charges at the time, which have since been discontinued by prosecutors. Shetland Space Port CEO Frank Strang subsequently cut all ties with Haston and repaid his loans.
In 2002 The Scotsman reported that a new venture, Haston Economics, promised to empower business owners to unlock the secret to raising capital – calling it a ‘game-changer’.
Satchi Holdings PLC’s investors were told that their investments were secure since they had Financial Services Compensation Scheme (FSCS) protection. As well as this, they were also informed that Satchi Holdings was backed with assets of £34m. Hartreel Ltd bought Satchi Holdings PLC’s assets in November 2021 and told investors a month later that the company would be repaying all investors early, but the last interest payments that investors received were between April 2020 and January 2022.
An investigation by the Insolvency Service uncovered that investments were not backed by FSCS protection and that there was no evidence that any security had been given for the money that was loaned. Moreover, these investment companies had failed to appoint a company secretary for Satchi Holdings, and failed to deliver up business records – both breaches of company law. These discoveries were made due to Haston and McQueen’s failure to cooperate, making it impossible to identify the total amount that members of the public had invested, and with no evidence of the £34m assets that investors were told Satchi Holdings owned.
“Satchi Holdings PLC took money from members of the public who invested in good faith, believing that their money was properly protected,” said Mark George, chief investigator at the Insolvency Service. “Both companies showed utter disregard for their financial accountability and blatantly misled investors, many of whom handed over life savings or pensions. Removing these rogue companies will protect the public from further harm.”
Haston is banned from running a business for ten years from August 2023, due to previous misconduct running another business, Leonreed Ltd.
Two finance companies have been wound up in the public interest after they deceived people into investing a total of at least £3 million in an unprotected bond scheme. Satchi Holdings PLC made false assurances of secure investments in asset-backed loan notes to its investors, while Hartreel Ltd, engaged in the same deceitful practice. These investors received minimal interest payments, no return of their investments, and risked losing their life savings.
Satchi Holdings PLC and Hartreel Ltd were wound up at the High Court of Justice on 30th January following an investigation by the Insolvency Service which uncovered the fraud. The Official Receiver was appointed as liquidator of the companies.
Satchi Holdings PLC, run by brother and sister Michael Haston and Jennifer McQueen, operated from Mayfair, London. Hartreel Ltd, on the other hand, was registered in Bridgend, Wales, and was run by Haston. The latter was once described as a ‘wonderkid’ investor based in Edinburgh. Only recently in 2020, Haston was reported by the BBC and other outlets to have invested £2m in a government-backed spaceport in Shetland through another of his ventures, Leonne International. The Financial Conduct Authority had previously issued a warning to investors about Leonne. Haston, also known as McQueen, was also facing fraud charges at the time, which have since been discontinued by prosecutors. Shetland Space Port CEO Frank Strang subsequently cut all ties with Haston and repaid his loans.
In 2002 The Scotsman reported that a new venture, Haston Economics, promised to empower business owners to unlock the secret to raising capital – calling it a ‘game-changer’.
Satchi Holdings PLC’s investors were told that their investments were secure since they had Financial Services Compensation Scheme (FSCS) protection. As well as this, they were also informed that Satchi Holdings was backed with assets of £34m. Hartreel Ltd bought Satchi Holdings PLC’s assets in November 2021 and told investors a month later that the company would be repaying all investors early, but the last interest payments that investors received were between April 2020 and January 2022.
An investigation by the Insolvency Service uncovered that investments were not backed by FSCS protection and that there was no evidence that any security had been given for the money that was loaned. Moreover, these investment companies had failed to appoint a company secretary for Satchi Holdings, and failed to deliver up business records – both breaches of company law. These discoveries were made due to Haston and McQueen’s failure to cooperate, making it impossible to identify the total amount that members of the public had invested, and with no evidence of the £34m assets that investors were told Satchi Holdings owned.
“Satchi Holdings PLC took money from members of the public who invested in good faith, believing that their money was properly protected,” said Mark George, chief investigator at the Insolvency Service. “Both companies showed utter disregard for their financial accountability and blatantly misled investors, many of whom handed over life savings or pensions. Removing these rogue companies will protect the public from further harm.”
Haston is banned from running a business for ten years from August 2023, due to previous misconduct running another business, Leonreed Ltd.
