Offshore Imperial Group Goes Into Liquidation In UK

Tax-News.com, London

14 June 2002

Imperial Consolidated Group, which has operated a variety of offshore scams extensively reported on by Offshore Business News Report (OBNR), has gone into voluntary administration in the United Kingdom, said Imperial's London-based public relations firm, Luther Pendragon in a press release:

'Imperial Consolidated Limited (formally (sic) Imperial Consolidated Plc), Imperial Consolidated Financiers Limited, and Imperial Phoenix Finance Limited have entered into voluntary administration.

'Imperial Consolidated presented its case for administration before Leeds High Court for the purpose of protecting the interests of its clients, creditors and shareholders in order to ensure the orderly realisation of assets.

'The Administration Order was made and the court has appointed Mazar Neville Russell as Administrators.'

Meanwhile, the Grenada International Financial Services Authority (GIFSA) still has control of Imperium Bank, an Imperial subsidiary. Grenada's Minister of Finance, Anthony Boatswain, announced on April 26, 2002 that his Ministry was assuming administrative control of Imperium Bank for an initial 15-day period while PricewaterhouseCoopers examined its books. The bank is believed to control most or all of Imperial Consolidated's offshore mutual funds.

GIFSA has repeatedly extended its control of the bank since taking it over on April 25, says OBNR, and is expected to formally revoke its license in the coming weeks. GIFSA is also exploring ways of taking control of Imperial's offshore mutual funds, which are believed to have more than $170 million of liabilities.

Subsidiaries of Imperial Group have been the subject of investor warnings and court cases in a number of countries for at least three years past. As long ago as 1999, the New Zealand Securities Commission warned investors against Imperial Consolidated Securities SA, based in Nassau in the Bahamas, which had been offering a number of different overseas funds in New Zealand.

Grenada began reviewing offshore financial operations in February 2001, and has since shut down 32 banks, leaving only 13 left in operation. However, Mr Boatswain said the country's offshore financial industry was not in jeopardy. "This is just a cleanup exercise" to ensure offshore banks operate within the Grenada and international law, he said.

Offshore Business News & Research is at www.offshorebusiness.com.

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