A Darlington-based company that sold investment opportunities in renewable energy plants has been wound up in the Manchester business and property courts.
The court heard that corporate bonds amounting to the value of more than £2.5m were sold to 208 investors between July 2015 and September 2016.
Investors were told their funds would go toward the development of anaerobic digestion plants which had a five-year term that would generate 11 per cent interest annually.
While the £2.5m was loaned to a third-party company in Northern Ireland for the construction of the digestion plants, building was never completed and that company was placed into administration in 2017.
Darlington-based UK Renewable Investments was henceforth unable to return money to investors and meet interest payments.
Insolvency Service chief investigator David Hope says: “Despite accepting millions of pounds of investments from members of the public, the company failed to exercise appropriate governance and control over how those monies were spent.
“Unfortunately, it is the investors who will suffer and this should serve as a warning that there are strict obligations companies need to adhere to when they raise money from members of the public.”